Equinix announces new SY3 Sydney data centre

SY2 data centre already full despite only opening in 2009

The current data centre gold rush in Australia shows no signs of petering out if the latest $72 million investment by Equinix in the first phase of its new International Business Exchange data centre, SY3, in Sydney is anything to go by.

The new centre will add 1,000 cabinets to Equinix’s existing capacity and will target the premium colocation and interconnection data centre services when it opens in the second quarter of 2011.

According to Equinix Australia, managing director, Darren Mann, demand for data centre services has been so strong that its previous data centre, SY2, opened in 2009, has recently hit capacity.

“The need for expansion has been brought on by fantastic uptake in all four eco-systems we support: networks, content and online media, finance, and cloud computing,” he said. “It’s that continued momentum that has meant we have filled our Sydney 2 facility ahead of time, and hence the need for the next stage in our expansion.”

All four market verticals had solid demand for data centre services, but the finance sector – driven by the need to cut costs during the global financial crisis, and the emerging cloud services sector, were particularly strong, Mann said.

“As adoption becomes more widely accepted it is just natural that this vertical will grow,” he said. [Cloud providers] need that to deliver the quality of service and value an end-user expects from moving into the cloud… and we can help them get closer to the user and deploy into multiple sites and across multiple regions.”

Mann would not comment on whether cloud providers such as Amazon and Verizon, both of which have suggested they will move into an Australian data centre soon, would be taking up the companies new offering.

“Local regulations will dictate and play a part in where information needs to live, particularly in the Asia region,” he said. “Equinix will only benefit from that kind of legislation.”

Similarly, Mann declined to detail whether it would be making a bid for the recently announced Federal Government Data Centre Panel but said the company was actively involved in the a similar panel being run by the NSW Government.

“Sydney for Equinix is a very important market and we don’t want to lose focus here,” he said. “It’s one of the top 10 financial centres around the world and our multinational customers continue to push into this market. It’s also a fantastic local market as outsourced colocation has become more widely accepted across enterprise and other sectors.”

Commenting on the recent Heads of Agreement signed between NBN Co and Telstra, Mann said with the deal signed there would now be some opportunity for Equinix to benefit from the NBN roll out.

“Suffice to say, NBN Co as it deploys will need to put network nodes around the place and Equinix would certainly be an ideal place to put an NBN node if you look at the concentration we have here and the aggregation of networks they could pick up as a result of that,” he said.

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