Equinix is building out the fourth phase of its second Singapore International Business Exchange (SG2), which brings it total number of cabinets to 3,256.

The additional space in SG2 – which will come online at a cost of US$28.5m at the end of the year- will be used by financial services and cloud providers.

Equinix managing director for South Asia Clement Goh said the company forecasts continued and increasing demand for cloud services from local and multinational cloud and financial services customers in region.

“Many businesses in Asia Pacific are realizing the benefits of cloud as the new way to deliver and consume IT services. In fact, statistics from Gartner have shown that spend on data center services has reached US$10B in the region alone last year,” Goh said.

“Cloud adoption in Singapore will accelerate rapidly in the next few years, with many companies such as the financial institutions identifying cloud technology as part of their business plans.”

The Singapore expansion follows similar programs carried out in Sydney, earlier this year, and Tokyo, Sydney and Hong Kong which received new IBXs last year.

Singapore has been earmarked by a number of colo providers for growth in recent times. Digital Realty Trust announced its purchase of a 375,500 sq ft data center in Jurong East last year and CenturyLink-owned Savvis announced its plans to build its second data center in Singapore in March.

Savvi’s SG2 will cover 53,000 sq ft with 32,000 sq ft of raised floor with 3.6MW of IT power.

Development Authority of Singapore senior director Andrew Khaw said Equinix’ expanded facility is testament to Singapore’s suitability for a data center site.

“Equinix’s close proximity to Mediapolis@One-North contributes to IDA’s vision of ICT as a critical differentiator to this flagship initiative to position Singapore in the international digital media industry.”

Mediapolis@One-North is a new tech city designed to be a hub for the digital media economy of Singapore that is designed to be a living laboratory for new media technologies.

Equinix’s SG2 is located in close proximity to the tech city. Equinix announced its Phase 3 expansion at SG2 in 2010, which saw 1,000 cabinet equivalents added in 2011.

Equinix said its Singapore IBX data centers represent the widest selection of international regional networks under one roof in South Asia. The country is also home to its Asia-Pacific Netowrk Operation Center (NOC). Currently, SG2 covers 189,090 sq ft and offers N+1 availability.

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