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Growing Silicon Valley Interconnection Demand Sparks Equinix Expansion

Phil Schwarzmann


The demand for greater interconnection is global, but there are few places on the globe where there’s greater demand for interconnection than in Silicon Valley.

Three of the Top 5 Global Internet Market Leaders in Mary Meeker’s latest report are based in Silicon Valley (Apple, Google, Facebook), and those are just the biggest stars on a deep roster of interconnection-hungry local firms. The ability to directly and securely connect to people, data, clouds and locations – anytime, anywhere – has become a requirement for any business competing in the digital economy. And the abundance of those kinds of companies in Silicon Valley means Equinix is always looking for ways to expand our capacity there.

That’s why the SV10 project is so important.

Last week, our CEO Steve Smith joined civic leaders from San Jose to break ground on SV10, which will become our eighth Silicon Valley data center when its $125 million first phase opens, scheduled for June 2017.

SV10 is the first of two new data centers to be built on an 11-acre parcel we purchased in San Jose. Those two facilities will combine with SV1 and SV5 to create a four-building Great Oaks Campus with the space and interconnection capacity to keep pace with regional needs.

The SV10 project is obviously important to us as a company. Our facilities there see the second-most data traffic of any market we’re in globally (our Ashburn, Va., facilities are No. 1). Meanwhile, more than half of the traffic on the West Coast moves through SV1 and SV5.

But we think it’s also significant for the broader Silicon Valley economy. Continued strong growth is expected there, and that’s why we thought it was worth celebrating a new project that will enable us to meet customer demand in Silicon Valley for the next decade.

We’ve been very active on the expansion front this year. Our deal to acquire European data center provider Telecity closed in January, we opened four new facilities on four continents in the following few months, and now SV10 joins the mix.

Beside Silicon Valley’s importance globally, and on our global footprint, there were a couple other reasons this particular project stands out.

  • We own the land. Fully developable, 11-acre parcels are extremely scarce in Silicon Valley, and the fact we own the land outright is a big advantage. The only way many of our competitors can expand is by adapting existing office buildings. But we’re clear to design and construct two purpose-built data centers here, which helps us build better, more efficient data centers more quickly. SV10 will be a LEED Certified Silver building, meaning among other things that it will meet strict water reduction standards and use a state of the art cooling system.
  • It’s ready for cloud, and ready for the enterprise. Cloud services are driving data center demand in Silicon Valley, and SV10 will combine with SV1 and SV5 to create a cloud-dense campus with a concentration on social media, Software-as-a-Service and content – all drivers of the digital economy. SV10 will host about 2,900 cabinets at full build, meaning it will have the size to meet ongoing demand for cloud services and anticipated demand from the enterprise, a vertical we’re targeting heavily at Equinix.

Please check out the photos below, and click the links to learn more about Equinix’s expansion plans and our existing Silicon Valley facilities.