Equinix, PGIM Real Estate JV on xScale Data Center in San Jose

Equinix, Inc. and PGIM Real Estate formed a $600-million joint venture to develop and operate the first xScale data center in the U.S., located at Equinix’s Great Oaks data center campus in San Jose alongside four existing Equinix International Business Exchange data centers. The two companies previously JVed on a hyperscale data center project in Australia.

The two-story facility, which will be known as SV12x, will be built out in two phases and is expected to provide more than 28 megawatts of power capacity at full buildout. The first phase of the facility is scheduled to be completed in the second quarter of 2024.

Under the terms of the agreement, PGIM Real Estate will control an 80% equity interest in the JV and Equinix will own the remaining 20% equity interest. PGIM Real Estate has been investing in the data center sector since 2013. This latest JV agreement with Equinix marks the first investment made through its dedicated global data center strategy.

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