Data Center Finance: Equinix Purchased Land In Silicon Valley
Colocation services giant Equinix recently purchased land in Silicon Valley for a possible future San Jose data center. The company bought 34 acres of land close to one of its existing sites in San Jose from semiconductor provider Xilinx for $38 million.
Equinix, which now has 105 data centers in 33 markets, is the world's largest data center provider. The company currently operates seven Silicon Valley data centers, totaling 448,500 square feet of data center space, and hopes to continue expanding its operations in that market. The company expects to begin building a new facility sometime in 2016.
"It helps us secure runway for future development in a market that can be challenging to acquire green-field sites in," Stuart Thompson, Equinix director of real estate for the Americas region, said. "It's one of our best markets."
The market for Silicon Valley data centers is currently under pressure due to high demand and fewer options. Last year the market was overpopulated, but as computing demand increases, more customers want to lease data center real estate from companies in the area.
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