Equinix announced in early November that it is opening another Tokyo data center. The increased demand for cloud computing capabilities in the area drove the company to build the new Japan data center.
Equinix plans to invest $43 million into the site, which will be the company's fifth Tokyo data center and sixth facility in Japan including an Osaka data center. Equinix has recently increased its presence in the country as Forrester Research predicted that the Japan data center market will grow to $14.2 billion by 2016.
The new facility, known as TY5, will be located near the city's financial district, where Equinix already operates another Tokyo data center. Proximity to the financial center will enable the company to easily provide low latency links to customers in the Japan Exchange and Tokyo Commodity Exchange, as well as offer connections to its TY3 facility in the area. Equinix will be inserting direct fiber connections between the new facility and the existing Tokyo data center to provide increased redundancy and connectivity to its customers.
More than 60 financial services firms have established a presence in Tokyo to connect with Equinix's established network of existing and potential clients.
"As Tokyo is a major international finance center that houses some of the world's largest investment banks, trading platforms and insurance companies, it is important that we provide the necessary interconnection services to meet these increasing demands," said Kei Furuta, managing director of Equinix Japan. "The new TY5 data center will do just that, as customers will have direct access to Equinix's established financial ecosystem in TY3."
The facility will be constructed in two phases, with the first phase set to be finished in early 2016. When fully completed, the Tokyo data center will offer 54,663 square feet and a capacity of 725 cabinets.