Some data center acquisitions are motivated by the need to add more capacity. Others are driven by the addition of revenue from existing tenants. In a growing number of deals, the goal is to add both income and future capacity.
That’s the case for the latest deal in the UK market, in which Equinix is acquiring UK’s data center operating business in Slough. The facility, which will be renamed LD10, is just around the corner from Equinix’s existing data center campus in Slough, a major data center hub about 20 miles west of London. The IO facility houses 350 cabinets of IT gear for existing customers, with a tenant mix that maps closely to Equinix’s existing base of financial services firms, enterprises, and network providers.
The IO Slough data center also has room for an additional 3,000 cabinets. That’s a lot of upside for Equinix, which says the additional space will help it meet growing demand for digital infrastructure connectivity in the United Kingdom and Europe. The new LD10 site will be tethered to the three existing data centers (LD4, LD5, LD6) on the Equinix Slough campus, enabling customers the ability to interconnect with one another and gain low-latency connectivity to key markets.
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