In response to the increasing demand for high-density power, advanced cooling, and robust interconnection driven by the accelerating demand for digital infrastructure, including artificial intelligence (AI), Equinix, the global digital infrastructure company, has invested AU$240 million (approximately US$160 million) to expand its International Business Exchange™ (IBX®) data centers in Sydney (SY5) and Melbourne (ME2). This substantial investment will add a total of 4,175 cabinets, enhancing the capacity and capabilities of these data centers to meet the growing needs of Australian enterprises.
A recent report from CSIRO highlights that 68% of Australian businesses have already implemented AI technologies, with an additional 23% planning to do so within the next 12 months. To effectively leverage AI, businesses require infrastructure that can support higher power densities, advanced cooling solutions, and seamless connectivity. Private AI is emerging as a preferred solution for enterprises, offering the control, privacy, and security needed to meet data governance, performance, and cost predictability requirements.
Guy Danskine, Managing Director of Equinix Australia, emphasized the importance of this expansion, stating, “The enhancement of SY5 and ME2 ensures we have the capacity to support our customers in the thriving Australian digital economy with minimal friction. As Private AI becomes the preferred adoption model, access to high-performance digital infrastructure is essential. This infrastructure provides low-latency connectivity to multiple cloud providers and private infrastructure, enabling organizations to leverage the best AI models while maintaining localization and control of their data. Sustainability and efficiency are core focuses, ensuring we deliver increasingly energy-intensive digital infrastructure responsibly.”
Equinix’s distributed platform architecture, built on a multicloud foundation, brings AI closer to where the data resides and offers high-speed connectivity to a broad ecosystem of providers and partners. This approach allows enterprises to retain ownership of their data and comply with data sovereignty and regulatory requirements. Additionally, Equinix provides easy access to dedicated and managed infrastructure, simplifying the development, deployment, and management of AI applications while maintaining predictable costs and performance.
To address the compute-intensive demands of AI workloads, Equinix plans to introduce advanced liquid cooling technologies, such as direct-to-chip cooling, in Australia starting in the second half of 2024. This expansion will enable more businesses to utilize the most efficient cooling technologies for their high-density hardware, supporting their AI initiatives effectively.
Equinix has implemented a range of sustainable construction initiatives at both SY5 and ME2 data centers. These efforts aim to minimize waste and maximize the use of recycled materials during construction. Notably, Equinix has achieved a 95% recycling rate for all on-site waste, including copper, steel, and cardboard. By adopting a digital twin approach using 3D building information modeling (BIM), Equinix has successfully reduced waste from services such as electrical cabling, ductwork, and fire pipes by 25%.
These initiatives are part of Equinix’s global Future First sustainability program, which focuses on delivering maximum value to customers while minimizing environmental and social impacts in the communities where the company operates. This program underscores Equinix’s commitment to sustainable development and responsible business practices.
As the digital landscape evolves and AI adoption increases, Equinix’s strategic investments and sustainable practices position it to meet the future needs of businesses in Australia. The expansion of the SY5 and ME2 data centers not only enhances capacity but also ensures that enterprises have access to the advanced infrastructure necessary to thrive in a digital-first world. With a focus on sustainability, efficiency, and high-performance technology, Equinix continues to lead in providing innovative solutions for the digital age.
