How to Meet Booming Interconnection Demand in Silicon Valley

Kevin Kull

After nearly two decades in Silicon Valley, Equinix has seen tech busts and booms, but we’ve never seen a time when there wasn’t demand for Interconnection. Equinix’s new SV10 data center is part of our continuous efforts to meet that demand.

Next week, we officially open SV10. The 13th Equinix data center in Silicon Valley was built to bring a range of benefits to our customers: It’s about making the rich digital ecosystems here even richer. It’s about ensuring our customers have room to grow in a market where colocation space is always at a premium. It’s about world-class facilities operating at the highest levels of performance and sustainability.

And it’s also about responding to emerging global trends that are making the need for Interconnection greater than ever.

Global trends and growing Interconnection demand

The Global Interconnection Index, a market study published by Equinix, projects a growing global need for Interconnection, which is defined as the private data exchange between businesses. It estimates that Interconnection Bandwidth will have a compound annual growth rate of 45% to 2020, which is faster than the growth of IP traffic or the Internet. According to the Index, a key trend driving this interconnection demand is urbanization – the migration of people globally to ever-more densely populated regions. And that trend is certainly playing out in Silicon Valley.

San Francisco County and the counties that make up Silicon Valley have grown anywhere from about 5% to 9% in the last six years, according to the U.S. Census. More people equals greater digital demands. The Index notes that “supporting urban density requires the Interconnection of applications, data, content and networking colocated in metro hubs.”

Our Silicon Valley metro is in one of those hubs, and SV10 was built to help supply that Interconnection.

Unrivaled ecosystem density

SV10 has all the features you’d expect from the newest building in a company that’s publicly committed to maximizing sustainability. For instance, indirect evaporative cooling technology at SV10 saves a ton of water, a hot aisle containment system makes our cooling much more efficient, and rooftop solar and fuel cells produce greener energy. But it’s something you can’t take a picture of inside of SV10 that’s the bigger draw, and that’s the density and variety of the industry ecosystems customers can access there.

Think of all our Silicon Valley facilities as a giant data center, because that’s essentially what the campus is. SV10 is located a cross connect away from the neighboring SV1 and SV5 facilities, so it’s as if everyone in all three facilities is just across the aisle from each other. And SV10 is connected to nearly all of the other Equinix data centers in Silicon Valley by Equinix’s Metro Connect network. That comes with huge advantages, because the metro is home to 625 companies, including 125 network service providers, as well as a dense mix of cloud service providers, digital content providers and digital payment firms. These are the top players in their industries, and they are potential partners or customers via direct Interconnection for anyone inside SV10.

A path to global interconnection

The Silicon Valley metro has been critical to Equinix’s business and history ever since Equinix was in just a handful of metros, and that hasn’t changed, even though Silicon Valley is now one of 44 Equinix metros globally. This metro is an onramp to the world for the tech companies that have made the region famous, and it’s a destination for businesses from all over. SV10 only strengthens the appeal of the metro, and it enhances the ability of our customers to build the Interconnection-first architectures digital businesses need to compete.

An Interconnection Oriented Architecture™ (IOA™) strategy is a proven and repeatable framework for placing IT at the digital edge – where commerce, population centers and digital ecosystems meet. This is where business is happening, and companies can’t succeed if they can’t thrive there. That’s what an IOA strategy aims to enable them to do, but it isn’t possible without a range of physical data centers in a variety of global locations where companies can deploy IT. Equinix is continually expanding and building facilities such as SV10 to make sure our customers can always successfully deploy an IOA strategy, and access the interconnection they need.

Read more in our IOA playbook.

And get more details about our Silicon Valley data centers and SV10.

Kevin Kull
Kevin Kull Vice President at Equinix, West Region