Equinix Serves as Gateway for Southern Cross NEXT Subsea Cable System, Linking Australia and New Zealand with the U.S.
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SX NEXT cable boosts the aggregate capacity of Southern Cross' Trans-Pacific networks by approximately 500%, offering lowest latency path to the U.S.
Today, 99% of intercontinental telecommunications traffic is transmitted via submarine fiber-optic cables, with less than 1% of the remaining traffic carried through satellite systems.1 As demand continues to increase for a low-latency digital economy, Equinix and Southern Cross are committed to maintaining low-carbon footprints of subsea cables by designing for sustainability and embracing shared metrics, as recommended by Sustainability Subsea Networks.
The SX NEXT cable offers the lowest latency path from
With the release of 400GbE (Layer 1 and 2) capability on the Southern Cross network earlier this year, customers can now take advantage of the lowest latency, secure 400G data center inter-connections between key Equinix facilities in
Highlights / Key Facts:
- The subsea cable momentum has continued worldwide as digital transformation remains a global priority for enterprises. Equinix's footprint of 250 IBX and xScale® data centers in 71 global markets across 32 countries provides the metro edge points of presence (PoPs) required to deliver low-latency interconnection for transporting increasing volumes of internet traffic. At Equinix, subsea cable owners/operators can deploy cable landing stations that open gateways between continents and interconnect businesses around the world.
- Equinix has won 50 subsea cable projects since entering the business in 2015. More than 50 Equinix metros are CLS enabled, meaning that Equinix's data centers are close enough to the coast to be able to support a CLS deployment.
- The need for additional capacity between
Australiaand the U.S.is driven by increased demand for cloud services, content and digital media, and e-commerce capabilities, a sign of the growing maturity of the Australian digital economy. Content providers are the primary trans-Pacific bandwidth consumers, accounting for almost 78% of bandwidth in 2022.2 Their increasing demand only began in 2015; prior to that, internet backbone providers held the largest share of the market. Since then, the demand gap between the two has continued to widen as content providers have maintained their rapid growth over the years.
- The trans-Pacific demand has grown at a compound annual growth rate (CAGR) of 41% over the past five years—significantly more than the 26% CAGR of internet backbone providers. In 2021, the Australian Government announced that it is investing an additional
A$1.2 billionto grow Australia'sdigital economy by 2030, including investments in infrastructure, skills, cybersecurity, regulations and digital trade.
- According to the Global Interconnection Index (GXI) 2023, an annual market study published by Equinix, global interconnection bandwidth—the measure of private connectivity for the transfer of data between organizations—is forecast to reach 27,762+ terabits per second (Tbps) by 2025, representing a five-year CAGR of 40%, equivalent to 110 zettabytes of data exchanged annually, or enough bandwidth to support over 50 million autonomous cars each exchanging over 2,000 terabytes (TB) of data per year. This forecasted growth shows how organizations are rethinking their business to implement future-proof infrastructure on technology platforms.
"We place high value on working with an industry leader that not only has a significant global presence but understands the intricacies of business in the Pacific region. Equinix's deep industry knowledge and robust digital ecosystems—where businesses come together to exchange data, unlock collaboration opportunities, and form new markets—enables us to provide innovative technology and network solutions to minimize latency and improve performance for our customers. Trans-Pacific subsea connectivity will continue to be a key enabler in the region for many years to come, and we're excited about this next phase of interconnection through our work with Equinix."
"Bandwidth demand continues to rise at a rapid pace on the Trans-Pacific route. Demand experienced more than a threefold increase from 2018 to 2022, with the route utilizing 255 Tbps of capacity last year alone. With the ever-increasing demand for data transmission and the burgeoning digital economies of the
"As bandwidth reaches unprecedented levels, the volume of subsea cable construction has reached its highest point in the 165-year history of this medium. Major projects are bringing new capacity into emerging and high-growth markets such as
2 TeleGeography, "Transport Networks Trans-Pacific Report," 2023
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company®. Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
About Southern Cross:
Southern Cross Cables Limited (SCCL) is a leading independent Australasian supplier of international capacity solutions to Carriers, Content Providers and Internet Service Providers (ISPs) in
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, risks to our business and operating results related to the COVID-19 pandemic; the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX® and xScale® data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues 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; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix 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.
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SOURCE Equinix, Inc.
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