Global interconnection and data center firm, Equinix, Inc. (Nasdaq: EQIX), announced the construction of its newest Tokyo data center, TY5, on Wednesday. The connectivity provider said the facility will meet the strong demand from financial services firms, as well as cloud service providers for data center and interconnection services in the Japanese capital.
The data center market in Japan is forecasted to reach US$14.2 billion by 2016 and Equinix’s expansion of its data center footprint in Tokyo will help it dominate the greatest possible share of the segment. The new TY5 will complement its existing Tokyo data center TY3, further enabling multinational companies to expand into the growing Japan market and access over 1,000 network providers within Equinix’s platform.
Presently, centralized liquidity hubs such as Equinix TY3 constitute the present landscape of low latency FX trading. When complete, TY5 will provide a higher total capacity of 725 cabinets, with 350 available in the first phase and 375 in the second. With 54,663 square foot of space, TY5 is located in a single tenant facility for improved design and physical security, with ever-present security officers and cameras. Scheduled to open in Q1 2016, it is being built in close proximity to TY3 to streamline operations.
Located near Tokyo’s financial district, TY5 is in close proximity to the Japan Exchange and Tokyo Commodity Exchange. By being in close proximity to these exchanges, TY5 will provide financial services companies with low-latency connectivity to key financial institutions, boosting the speed of trading.
The firm announced that over 60 financial services companies, including FXCM, have already expanded into Tokyo to connect to Equinix’s established ecosystem of existing and potential customers and partners. TY5 will have direct fiber connectivity to TY3, enabling customers to access its financial services ecosystem.
Kei Furuta, Managing Director, Equinix Japan, commented: “TY5 will be built in response to the various demands being driven by the digital economy across the cloud, mobile and financial services industries. As Tokyo is a major international finance center that houses some of the world’s largest investment banks, trading platforms and insurance companies, it is important that we provide the necessary interconnection services to meet these increasing demands. The new TY5 data center will do just that, as customers will have direct access to Equinix’s established financial ecosystem in TY3. Cloud, content and network providers will also have the opportunity to rapidly expand their business by connecting to TY5, meeting their customers’ international and domestic connectivity needs.”