December 9, 2013
Tencent Expands Internationally with Equinix
HONG KONG - December 10, 2013 - Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that Tencent, China's leading content provider, has deployed in Equinix's Hong Kong data center, with plans for future expansion in additional markets globally. The deployment will enable Tencent to expand the availability of its Internet services internationally while delivering high-performance services and applications to its users globally.
Highlights / Key Facts
- China's GDP has maintained an average annual growth rate of approximately 10.2 percent since 2006, far outstripping growth in most Western economies.” Asian companies invested almost three trillion dollars in international expansion from 2003 to 2011 with 90 percent of Asian companies remaining strongly committed to expansion, according to 2013 research from Accenture.
- Tencent is one of China's largest and most widely used Internet service portals, delivering leading Internet platforms such as QQ, WeChat, qq.com, Qzone and Tenpay. WeChat, an instant messaging app, is the latest service to have been made available by the company and has just surpassed over 100 million users outside of China in August 2013.
- As content consumption increases globally – largely driven by the rising use of mobile devices to access services and information – this poses a significant opportunity for content companies to expand outside of China. Global mobile data traffic growth is projected to increase 13 times from 2012 to 2017, reaching 11.2 exabytes per month, with APAC set to generate 47 percent of all mobile data traffic by 2017. However, to successfully handle large amounts of data, content providers need to have the right IT infrastructure in place to meet this ongoing trend.
- Through the deployment in Equinix's International Business Exchange™ (IBX®) data center in Hong Kong, Tencent has access to Equinix's carrier-dense ecosystem of more than 950 network providers globally, giving the company the freedom to choose the best provider to fit its needs and expand services outside of China rapidly and cost effectively. Access to multiple networks, as well as the ability to peer with members of the Equinix Internet Exchange (EIE), means Tencent can optimize transit routes to achieve lower latency and deliver improved application performance to end users.
- Home to over 4,400 customers including 500 content and media companies, Platform Equinix™ allows Tencent to interconnect with a large marketplace for revenue- generating opportunities. Equinix's existing customers will also be able to connect their IT infrastructure directly to Tencent's services.
- Samuel Lee, president, Equinix Asia-Pacific:
"With the international demand of Tencent's services, it is critical that it has the necessary connectivity options and infrastructure to support its growth around the world. Through Equinix's global footprint in Hong Kong, we are committed to helping Tencent realize its expansion goals. The deployment will provide Tencent with industry-leading colocation services, the broadest interconnection options to the world's top networks and access to an increasing number of large enterprises and expanding ecosystems of providers, enabling Tencent to accelerate growth and the delivery of its services to more users overseas."
Equinix, Inc. (Nasdaq: EQIX), connects more than 4,400 companies directly to their customers and partners inside the world’s most networked data centers. Today, businesses leverage the Equinix interconnection platform in 31 strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.