Equinix has partnered with a Shanghai system integrator for network and communication services to use the company's data center as an entry point into the rapidly growing China market. Partnering with a Chinese company is the only way for a foreign data center provider to operate in the country, according to Equinix spokeswoman Joan Powell.

Although the Silicon Valley-based colocation company has had a data center in Hong Kong, its partnership with Shanghai Data Solutions gives it its first instance of presence in mainland China, one of the world's fastest growing markets. The market is closed to foreign data center companies, who cannot obtain a license to operate there unless partnered with a domestic firm. Powell said Equinix took the step after getting multiple requests from its existing customers for space in the Shanghai market.

\"Shanghai, home to a vast base of multinational corporations, is identified by Equinix customers as a top location for buying premium quality colocation services in China,\" Equinix Asia Pacific President Samuel Lee said in a statement. \"A large percentage of the SDS existing customer base consists of foreign telecom operators, financial institutions and multinational corporations.

\"SDS's proven track record in supporting foreign customers and bilingual capabilities in both sales and operations functions make the company a natural choice as our data center partner in Shanghai.\"

While the initial step was spurred by demand from existing customers, Powell said Equinix expected its expansion into China to result in new business.

The news comes less than one week after Equinix announced new loan capacity of $170 million, arranged with a group of banks. The company said it will use the loan to finance is operations in the Asia-Pacific region. Equinix will spend about half of it to refinance existing debt, however.