Tuesday, 12 March 2019 11:40

Equinix investing US$84m in new Melbourne business exchange Featured

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Artist impression of proposed Equinix ME2 data centre Melbourne Artist impression of proposed Equinix ME2 data centre Melbourne

Global data centre operator Equinix is to make an initial investment of US$84 million (approx A$118 million) to build a new International Business Exchange data centre in Melbourne to support what it says is the growing demand for digital transformation.

The first phase of the IBX data centre, to be named ME2, is set to open in Q3 2019 with an initial capacity of 1000 cabinets.

Since entering the Australian market in 2015, Equinix says it has has built a mature ecosystem in Melbourne of more than 200 customers across multiple industries, with the network effect creating increased need for further capacity to support growing demand for digital transformation.

In addition to providing geographic redundancy solutions for customers currently residing in its facilities across Australia, Equinix says the ME2 IBX will offer space to new customers wanting to benefit from the network effect of its rich interconnection ecosystem.

The ME2 IBX will be located in Port Melbourne, approximately six kilometres from the Melbourne CBD, and will host a colocation space of more than 29,300 square feet (2,730 square metres) at completion of phase 1 and more than 88,000 square feet (8,190 square metres) when fully built.

Equinix says ME2 will offer a wide range of interconnection options, including Equinix Cloud Exchange Fabric, which allows businesses to set up on-demand and secure connections to more than 1,400 participants across all regions around the world.

“ECX Fabric provides the largest cloud on-ramp to more than 265 cloud service providers (CSP) in Australia, including Alibaba, Amazon AWS, Google Cloud, Microsoft Azure, SAP Cloud, Oracle, SoftLayer and other local providers,” Equinix said.

Equinix says IBX data centres in Melbourne make up two campuses, giving customers “network-rich redundancy options for implementation of a resilient infrastructure in the metro”.

ME2 will be located adjacent to ME1 with direct physical access between the buildings via a secure link bridge, and Equinix says the proximity of ME2 with ME1 allows for seamless expansion of services for existing Equinix ME1 ecosystem members.

And Equinix says the ME2 IBX will also benefit from Equinix Metro Connect connectivity to the ME4 IBX in Derrimut, providing customers with the ability to support geographical diversity and redundancy as needed to support full business continuity within the state.

As the only location in Victoria with direct access to the two largest peering points and the Australia Singapore Cable (ASC) access point, the Equinix says the Melbourne facilities offer strong network connectivity with a broad range of over 50 network service providers.

According to Equinix, Melbourne is increasingly experiencing enterprise transformation.

The city is predicted to have a digital economy worth more than A$50.8 billion (approximately US$36 billion) by 2020.

Equinix says its IBX data centres in Melbourne enable companies to digitise their businesses by embracing cloud applications from more than 80 Cloud and IT service providers, and get closer to the digital edge.

The company says this will offer the ability to support large scale deployments and access to the diverse Victorian economy.

“The past few years have been an exciting time of growth for Equinix globally as we aim to provide the best possible support for our customers navigating digital transformation," said Samuel Lee, president, Equinix Asia-Pacific.

"Australia is a key market in the Asia-Pacific region for Equinix, and we have been investing heavily to capitalise on the opportunities in the market as a result of digital transformation and increasing adoption of cloud services.

"We are thrilled to continue our growth in this region with ME2."

Jeremy Deutsch, managing director, Equinix Australia, said: “We started in Melbourne only four years ago with our green fields build of ME1. Fast forward to today we now have four sites with two distinct campus locations in Melbourne.

“These sites house a combined ecosystem that provides the perfect building blocks to enable digital transformation. The Melbourne metro continues to provide some of the most advanced hybrid multi-cloud implementations. Together with the upcoming ME2, we are creating a place where enterprises can interconnect and leverage our services.”


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Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. He is a 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).

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