Colocation industry leader Equinix says it will pursue larger deals with hyperscale Internet companies, a move that will place it in direct competition with some of the data center REITs (real estate investment trusts) that specialize in large footprint IT infrastructure.
In its quarterly earnings call yesterday, Equinix executives said that the company will begin competing on deals for as much as 5 megawatts of data center space. That’s a significant change for Equinix, which has historically focused on leasing cages and cabinets, often at premium pricing due to the excellent connectivity of its data centers.
“Several years ago, we’d probably consider anything over 250 kilowatts a large footprint,” said Charles Meyers, the President of Strategy, Services and Innovation at Equinix. “With our hyperscale initiative in particular, we’re talking more about multi-megawatt, probably 3 megawatt to 5 megawatt or more in a single implementation – not a single phase, but in one implementation that comes over a relatively short period of time. That’s kind of the scale we’re thinking of.”
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