CPP investment board in $15-billion joint venture to develop data centres
Equinix Inc. formed a joint venture with Canada Pension Plan Investment Board and Singapore’s GIC Pte to develop new data centres.
Redwood City, California-based Equinix intends to raise more than US$15 billion in capital with its partners, according to a statement Tuesday, confirming an earlier story by Bloomberg News. The company said it expects the joint venture to purchase land to build new facilities that may eventually add more than 1.5 gigawatts of new capacity for hyperscale customers.
Equinix is the largest real estate investment trust focused on data centers, with a market capitalization of about US$84 billion. The company has previously teamed up with large investors including GIC and PGIM to develop or acquire data centres.
For the new partnership, CPP and GIC will each own 37.5 per cent of the joint venture, and Equinix will own the remaining 25 per cent.
Demand for data centres has proliferated amid the boom in artificial intelligence, with executives across the globe citing an increased need for the facilities as well as energy to power them.
Bloomberg.com
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