21. November 2005
XEurope expands London datacenter footprint
London's first new facility in over four years
IXEurope, Europe's fastest growing specialist datacenter services group, today announced it has acquired a new site to convert into a datacenter in London to accommodate strong growth from the corporate market, including leading financial services organisations. First customers for over 20% of the space have already been signed and delivery of service will commence in January.
With approximately 30,000 square feet of net area, the datacenter is the first new significant facility to be opened in London in over four years. Located in Park Royal, West London, it will become IXEurope's third facility in London and tenth across Europe following its acquisition last month of a13-acre (5 hectare) datacenter and business continuity campus in Frankfurt, Germany.
A multi-million pound refit has commenced to ensure the datacenter will have a physical infrastructure that is consistent with IXEurope's industry-leading standards for security, environmental control and power. It will be built to a power density of 1,200 Watts/m2, a far higher specification than many existing facilities, and already has multiple fibre optic connectivity from BT, COLT and MCI.
Guy Willner, CEO of IXEurope comments
"This acquisition is part of a Europe-wide expansion plan which we are executing over the coming months at IXEurope with the aim of maintaining our industry-record annual year-on-year revenue growth of over 35%. Having reviewed our business we decided on a plan to ensure the next five years' growth for the company based on our significant success rate in providing high-end datacenter services to enterprise and web businesses across Europe. This new London IXdatacenter puts us in a commanding position in the market."
"We have conducted a rigorous review of all potential sites on the market and this is the only property available to meet IXEurope's high standards. The site is undergoing a substantial refit and provides us with considerable capacity to meet the strong demand we are experiencing for datacenter based services in the region."
"It fits in extremely well with our strategy to build datacenter capacity by acquisitive and organic growth across Europe and enables us to continue our strong growth."
London is one of IXEurope's fastest growing markets and the expansion is a result of the company's phenomenal success in 2005. A significant driver of the expansion is the strong traction with London's corporate and financial services market, which has come to rely on IXEurope as these companies increasingly realise the benefits of outsourcing the datacenter aspect of their IT infrastructure.
The investment is the sixth acquisition to be made by IXEurope since the company was founded in 1999 and follows the recent second half 2005 announcement of 47% growth year-on-year, the acquisition of GIC, a leading German Business Continuity Services (BCS) company and the completion of a EUR 32million funding package with CIT Bank and the Group's existing shareholders EAC and Bank of America.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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