Equinix has announced a $43 million investment to build its fourth International Business Exchange (IBX) data center in Tokyo.
Called TY4, the new facility is designed to meet strong demand for Equinix’s data center services in the Otemachi area and provide customers with a broad choice of network connectivity options for their business, the company said.
According to Equinix, the new IBX data center will be launched in two phases, providing a total capacity of 750 cabinet equivalents.
The first phase, scheduled to open in the third quarter of 2013, will offer initial capacity of 450 cabinet equivalents. TY4 will have direct fiber connectivity to Equinix's three other IBX data centers in the city.
Japan is experiencing high demand for data center services. Quoting research by International Data Corporation (IDC), Equinix said the data center outsourcing market in Japan will reach an estimated 1.4 trillion yen ($20 billion) in 2015.
The market is predicted to have a compound annual growth rate (CAGR) of 8.6% between 2010 and 2015. In addition, the colocation market in Japan will have a CAGR of 4.2% in the same period of time, reaching 742.6 billion yen ($9.26 billion) in 2015.
Otemachi is the recognized internet exchange hub in Japan, with 90% of internet traffic being exchanged in the area. More than 4,000 large enterprises and financial firms are also headquartered in the area.
“Tokyo is a strategic market for Equinix as it is one of the largest data center markets worldwide and a primary gateway for traffic from the US. to Asia. We believe our expanded presence in Japan will give our customers greater access to global network connectivity and capitalize on the opportunities presented by the Japanese market,” Kei Furuta, managing director, Equinix Japan K.K, said.