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Equinix Expands (Again) in Washington

Equinix will invest $70 million to build an 85,000 square foot data center at its rapidly expanding northern Virginia campus.

Data center service provider Equinix, Inc. (EQIX) will build a new 85,000 square foot data center on its Ashburn, Va. campus to meet continued customer demand in the Washington, D.C. area, the company said this week. The $70 million facility will add approximately 1,650 high-power density cabinets, and is expected to open to customers in the first quarter of 2008.

The expansion by Equinix is a sign of the strength of the northern Virginia market, where the company already has four data centers totaling 386,000 square feet of data center space, including a brand new facility that just opened in January.

"The continued demand we have experienced in the Washington, D.C. area necessitates that we begin construction on our next IBX to ensure smooth customer growth," said Peter Van Camp, CEO of Equinix. "Today's announcement is a continuation of our ongoing expansion program, which includes the opening of four new centers in 2007, and will enable us to grow our market leadership position."


Equinix said it expects about $45 million of the $70 million cost of the project to be incurred in 2007, and revised its capital expenditures guidance for the full year 2007 to a range of $361.0 to $381.0 million. All other financial guidance for the first quarter and the full year 2007 remains unchanged.

Equinix is also in the midst of building huge projects in northern New Jersey and Chicago and recently announced that it will buy its San Jose, Calif. facility, a transaction driven at least in part by the desire to have land for additional greenfields expansion.