Equinix Capitalizes on Digital Transformation, Eyes Capacity Expansion
Equinix, a major data center operator, owes its rapid growth to the digital transformation that continues to sweep across both commercial and non-commercial organizations. According to Light Reading, the company is now set to increase its capacity by approximately 50% in response to this trend.
Jeremy Deutsch, the head of Equinix APAC, revealed plans to increase the company’s data center capacity by 258 MW over the next 18 months, an increment representing roughly half of the operator’s current capacity. The company is experiencing a positive period, reporting Q1 earnings of $2 billion, a 15% YoY growth, and operational profit increased by 36% to $384 million. The largest segment of their revenue comes from cloud and IT services (36%), corporate services (35%), and network operators (22%).
Deutsch stated that Equinix intends to serve as a platform for the digital transformation of corporate clients. For data centers themselves, digital transformation means placing IT infrastructure closer to users and ensuring heightened performance.
It is reported that Equinix conducts a substantial amount of business with hyperscalers, but the greatest potential lies in its work with corporate clients. Over 10,000 companies utilize Equinix services, with more than half belonging to the Fortune 500 list. Interaction points for these businesses are literally housed within the operator’s infrastructure.
Equinix’s mission includes creating ecosystems that support companies’ digital businesses, ranging from the needs of hyperscale-level cloud players to providing services and tools across various industries, from finance to healthcare. Particular attention is given to the burgeoning technology of generative AI services, which have recently gained viral popularity in companies expecting business-level service. Although their available services are high-quality, the company acknowledges the need for further refinement and anticipates being able to meet mass business demands soon.
The company is continuously working to expand its service offerings and partner network. For instance, in March 2023, the British company Oxford Quantum Circuits (OQC) announced intentions to install a quantum computer in an Equinix data center in Tokyo. It will be mounted at the Equinix TY11 Tokyo IBX site, and the Equinix Fabric network will enable access to the system’s capabilities in a “Quantum Computing as a Service” format for OQC’s corporate customers worldwide.
- I'm Vasyl Kolomiiets, a seasoned tech journalist regularly contributing to global publications. Having a profound background in information technologies, I seamlessly blended my technical expertise with my passion for writing, venturing into technology journalism. I've covered a wide range of topics including cutting-edge developments and their impacts on society, contributing to leading tech platforms.
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