Equinix, a digital infrastructure company, and PGIM Real Estate, PGIM’s real estate investment and financing arm, have launched a $600 million joint venture to develop and run the first xScale data center in the U.S. 

The two-story facility, known as SV12x, will be in San Jose, CA, as part of Equinix’s Great Oaks data center campus, which includes four current Equinix International Business Exchange data centers. 

PGIM Real Estate will control an 80% equity interest in the joint venture, while Equinix will own the remaining interest. 

The SV12x data center will be built in two phases, the first of which is planned to be completed in the second quarter of 2024. It is expected to provide more than 28 megawatts of power capacity. 

Along with Equinix’s other hyperscale joint ventures in Europe, Asia-Pacific, and other parts of the Americas, the joint venture will increase Equinix’s global xScale data center portfolio to over $8 billion across more than 35 facilities. 

This partnership is the second collaboration between Equinix and PGIM Real Estate. The firm has been active in the data center sector since 2013, and the joint venture represents the first investment through its dedicated global data center strategy. 

Pictured: Equinix SV12x International Business Exchange in San Jose, CA