Equinix forms US$15 billion joint venture with GIC and CPP Investments for xScale Data Centers

On October 1, 2024, Equinix, Inc. (Nasdaq: EQIX) announced the signing of a joint venture (JV) agreement with GIC and Canada Pension Plan Investment Board (CPP Investments), targeting over US$15 billion (approximately CAD 20.4 billion) in capital. The JV aims to accelerate the growth of Equinix’s xScale data center portfolio, catering to the expanding needs of hyperscale and AI-driven companies. This agreement, which marked Equinix's first partnership with CPP Investments, is intended to support the development of new xScale facilities across multiple U.S. campuses, eventually adding more than 1.5 gigawatts of capacity.

Under the terms, GIC and CPP Investments each controls a 37.5% equity stake, while Equinix holds 25%. The partnership planned to leverage both equity commitments and debt financing to reach the targeted investment amount. The new JV built on Equinix’s existing partnerships with GIC in Asia, the Americas, and Europe, where over US$8 billion (approximately CAD 10.9 billion) had been committed to similar projects.

The JV’s completion remains subject to regulatory approvals, which are expected by the fourth quarter of 2024. This strategic move positioned Equinix to meet increasing demand for digital infrastructure amid rapid technological advancements, particularly in artificial intelligence.

Deal Type

Joint Venture

Industry

Tech/Computer/IT

Transaction

$ 20,400,000,000

Deal Status

Active

Closing Date