Online retailer Amazon.com is expanding its IT infrastructure operations and outsourcing a new data center to Equinix, a provider of data center and co-location services.
Amazon already operates data centers in Seattle and Chantilly, Va., but decided to outsource the additional data center to Equinix, according to Margie Backaus, chief business officer at Equinix.
Backaus said Equinix's neutral Internet hub is where big content companies like Amazon, Yahoo, Google and MSN go for secure, direct access to more than 100 network service providers serving more than 90 percent of the world's Internet networks and users.
"Secure data center operations are an important contributor to the overall quality of our customers' experience, and Equinix exceeded our stringent requirements," said Tom Killalea, vice president of infrastructure of Amazon, in a statement.
Killalea said the move into Equinix's Internet Business Exchange Center will allow Amazon to reduce operating costs and pass those savings onto customers in the form of lower prices.
Backaus said Amazon's decision to select Equinix as its first outsourced data center provider was a huge validation of Equinix's ability to serve the mission-critical operations of the world's largest e-commerce and content providers.
Because Equinix is in a quiet period prior to releasing its earnings report next week, it couldn't talk about the financial aspects of the deal, Backaus said.