Global colocation provider Equinix has announced the opening of its data center in Osaka, its first in the western region of Japan.

Called OS1, the data center was built in partnership with K-Opticom, one of the largest access providers in the Osaka/Kansai area.

Also involved were Kanden Energy Solutions (KENES) and O-BIC, an Osaka government agency that supports foreign-owned companies establishing businesses in the region.

Equinix said global companies could “easily” expand their businesses to Osaka, the second largest market in Japan, with the opening of the carrier-neutral data center.

Osaka “ideal second metro”

Equinix's Japanese data centers will aim to provide customers with access to a diversity of networks and geographies, utilizing the close proximity between Osaka and Tokyo.

The first phase of OS1 will offer an initial 320 cabinets, expanding to over 800 in 2014.

OS1 will aim to provide multinational telecommunications companies the ability to interconnect with multiple local network services through K-Opticom.

Customers inside OS1 will have access to more than 950 domestic and international carriers, “establishing Osaka as a global network hub” by directly connecting to Dojima, the network core in Osaka.

Equinix said customers in the data center can interconnect with a marketplace of existing and potential customers for revenue generating opportunities, and connect their IT infrastructures directly to partners' services.

Customers can also select and peer with a wide range of network providers through the Equinix Internet Exchange (EIE), optimizing transit routes and helping decrease latency to “significantly improve performance”.

OS1 has preventative measures in place in case of power supply issues or floods, given the prevalence of earthquakes in Japan. With power systems that have built-in redundancy and backup generator systems in the event of a local utility failure, the structure is built to sustain potential environmental disasters.

OS1 is also built with the most sophisticated seismic resistant system, handling maximum movement in response to anticipated large earthquake motions.

Kei Furuta, managing director of Equinix, Japan, said the data center would provide Equinix’s global customers with a diversity of networks and connectivity options in Osaka, “driving synergies” with the company’s Tokyo operations. 

“With the two key hubs in Japan, cloud, content and network providers, as well as financial services firms, can access the broadest choice of networks in the region, enabling them to rapidly and cost effectively expand their business, while better serving their international customers,” Furuta said.

Equinix announces $500m share repurchase program

Equinix also announced its board of directors has authorized a share repurchase program of up to US$500m through 31 December, 2014.

Share repurchases may be made by the company from time to time in open market transactions at prevailing market prices or in privately negotiated transactions.

Steve Smith, CEO and president of Equinix, said the authorization “reflects our confidence” in Equinix's long-term strategy and commitment to a disciplined capital allocation program.

“Our first priority is to continue to invest in the business to capitalize on expansion opportunities in existing and potential future markets around the world,” Smith said.

“At the same time, Equinix's financial performance and the strength of our balance sheet, gives us both the confidence and the flexibility to execute this share repurchase program thereby creating significant shareholder value.”