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Inside Equinix's Plan To Build Data Centers Exclusively For The World's Largest Clouds

The surging demand for cloud services has made Equinix's substantial existing capacity a bit restrictive for some of its largest and most-prominent customers.

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Insatiable Hyper-Scale Demand

Because of Equinix' omnipresence and scale, the industry's largest clouds rely on the data center giant when they need to add capacity quickly or deploy edge nodes and gateways in markets around the world.

The hyper-scalers spent more than $500 million on Equinix leases last year. But that didn't buy enough computing capacity to meet their rapidly expanding needs, said Eric Schwartz, Equinix's chief strategy and development officer.

Sometimes those providers provision a couple cabinets to meet demand in a specific region—other times they scale to a substantial deployment of 50 racks.

"Historically, when they approached us with larger requirements, and they could see we were building large sites, we basically had to say no," Schwartz said.

"Our capacity was devoted to our existing business model, and had we said yes to them, we would have had to say no do other customers."


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