Home Data Centres Equinix tips $42 million into Sydney data centre expansion

Equinix tips $42 million into Sydney data centre expansion

Equinix is investing US$42 million for the expansion of its SY4 International Business Exchange (IBX) data centre in the Sydney suburb of Alexandria.

Equinix says the data centre, four kilometres from the Sydney CBD, is to be expanded to meet the rising demand for additional capacity and interconnection services.

Under the phase 2 expansion the data centre will host an additional 1500 cabinets, bringing the total capacity to 3000, with a total usable floor space of more than 12,500 square metres (130,000 square feet).

The expansion is scheduled for completion by the end of 2017.

Jeremy Deutsch, managing director, Equinix Australia, says the investment is the latest in a series of expansions across Asia-Pacific, with other recent expansions in Melbourne, Tokyo, Hong Kong and Singapore.  

“An interconnection-first strategy for IT is now central to realising digital transformation, and Australia is fast becoming an interconnection hot spot,” he said.

“Equinix has the capability to provide organisations with direct, private access to the leading cloud providers, as well as many specific cloud services, offering organisations the perfect environment to embrace hybrid cloud architecture.

“Today, we are already supporting more than 100 local and multinational companies in SY4. Our investment in SY4 demonstrates our ongoing commitment to providing the most robust architecture and interconnection options that allow customers to accelerate business relationships and speed to market.”

Deutsch cites a recent Equinix survey of 1000 global IT decision-makers which found that Australia is one of the leading countries pursuing interconnection.

According to Equinix, this drive towards greater interconnection makes a significant bottom-line impact on businesses and markets, as 40% of interconnected Australian companies have realised more than US$10 million (A$14 million) in revenue opportunities and cost savings.  

And, Equinix says some 86% of enterprises use the cloud and, with key cloud players like Amazon, Google and Microsoft, Australia is already the "largest Infrastructure-as-a-Service market in the Asia-Pacific region".

According to Foad Fadaghi, managing director, Telsyte, with more enterprises and managed service providers moving to the cloud, including for security and data protection, “additional data centre capacity in Australia is growing in demand”.

 “There is also an increased desire among CIOs to leverage a highly interconnected IT architecture, and providers that have location and interconnectivity advantages are best suited to deliver value to clients.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).