- Data centre operator Equinix is considering selling equity assets valued at about $2 billion in its Hong Kong data centre facilities.
- Data centre transactions and investments reflect the central position of data centres in the global digital economy continues to strengthen.
OUR TAKE
Founded in Silicon Valley in 1998, Equinix has expanded globally and now has about 260 data centres worldwide, including nine markets in the Asia Pacific region, with top partners such as Amazon Web Services, Google Cloud and Oracle. The Nasdaq-listed company has a market capitalisation of $75.7bn, according to LSE data.
–Zora Lin, BTW reporter
What happened
Global data centre operator Equinix is considering selling a minority stake in its Hong Kong data centre facilities, valuing the assets at about $2 billion, according to sources. Equinix has hired Citigroup to manage the sale.
This California-based company may sell a 25 percent stake in its Hong Kong data centre, one of the sources says.
With five data centres in Hong Kong, Equinix serves hundreds of enterprises across a wide range of industries, including more than 200 cloud and IT services and more than 105 network services.
A spokesman for Equinix says the company is fully committed to its Hong Kong operations. “Equinix Hong Kong is an important connectivity hub for our customers around the world. We will continue to invest in future growth to ensure our customers can confidently deploy in Hong Kong.”
Also read: Talen faces utility challenge over Amazon data centre deal
Also read: PAIX data centres expand Ghana’s capacity to 1.2 MW
Why it’s important
The data centre is a key platform for cloud computing, IT services and network services, and its value lies in supporting the digital transformation and AI application needs of enterprises worldwide. Equinix, one of the world’s leading data centre operators, is considering selling part of its stake in Hong Kong, showing the activity and high valuations in the data centre market.
The AI boom is driving demand for digital infrastructure. The plan comes as global private equity investors, asset managers and technology companies are gearing up to make billions of dollars worth of data centre-related deals and investments in Asia to meet surging demand for AI.
The rapid development of AI has driven the demand for large-scale data processing capabilities and high-speed network connectivity, further strengthening the central position of data centres in the global digital economy.
