Tuesday, October 17, 2017

Equinix buys 1.5 million sqf of land in Washington DC for future data centre development

Booming Northern Virginia market gets another boost from Equinix as colocation space nears 15 million sqf.

The world’s largest colocation provider, Equinix, has spent $34.5m in the acquisition of 34.5 acres of land in Ashburn, just outside Washington DC, to expand its local campus.

The land in the Loudon County, which amounts to approximately 1,502,820 sqf, is divided into four parcels and will be used by Equinix to build multiple new greenfield International Business Exchange (IBX) data centres.

The operator currently manages ten data centres in the Washington DC region, with eight of them located in Ashburn alone.

In total, the ten facilities cover more than 500,000 square feet and serve 850+ customers, representing what Equinix claims to be the largest Internet exchange point in North America and one of the largest in the world.

The company said in a statement that the acquisition is part of its expansion roadmap which sets out a strategy to acquire land and buildings to increase ownership of Equinix assets.

This strategy has seen the provider purchase land to expand campuses in Ashburn, Silicon Valley and Chicago in recent months, as well as purchase Equinix IBX buildings in Amsterdam, Paris and Rio de Janeiro.

Karl Strohmeyer, President, Americas, Equinix, said: “The acquisition of this property will enable Equinix to accommodate the growing number of global companies that are solving the digital edge through interconnection with the robust ecosystem of strategic business partners located at Equinix’s Ashburn campus.”

Also commenting, Kelly Morgan, Research Vice President, Services, 451 Research, denoted that Northern Virginia is the largest multi-tenant data centre (MTDC) market in the U.S. by operational square feet and “will continue to grow rapidly, as several new facilities are expected to come online in the next one to two years”.

She said: “The market has seen consistently strong demand, enabling providers like Equinix to fill large builds quickly.

“Northern Virginia not only attracts data centre tenants from all over the globe interested in connectivity, but providers there serve government agencies and local businesses.”

According to research by JLL, the Northern Virginia saw in 2016 a 30% increase in demand when compared to 2015.

The market had at the end of 2016 11.2 million sqf of hosting space, boosting a total power of 773.6 MW.

The total commissioned vacant area amounted to 258,615 sqf and power to 41 MW. The market is also expanding with 1.13 million sqf of space being built and 103.1MW of power being added at the moment.

A further 2.67 million sqf and 290.8 MW of power is planned for commissioning, according to JLL.