Equinix, a leading data center company, has formed a $600 million joint venture with PGIM Real Estate, the real estate investment and financing arm of Prudential Financial, to develop a hyperscale data center in Silicon Valley, California. The facility, named SV12x, will be built in two phases and is expected to provide 28MW of IT capacity at full build-out. The first phase is scheduled for completion in Q2 2024.

Located at Equinix’s Great Oaks campus, SV12x will be the sixth facility in the company’s Silicon Valley data center portfolio. Under the terms of the agreement, PGIM will control 80% of the joint venture’s equity, with the remaining 20% held by Equinix. This partnership follows their previous collaboration on a $575 million joint venture for the xScale data center program in Sydney, Australia.

The new joint venture will expand Equinix’s xScale hyperscale platform globally, taking the company’s xScale data center portfolio to over $8 billion across more than 35 facilities with an expected 725MW of capacity at full build-out. Equinix has also partnered with Singapore’s GIC sovereign wealth fund to develop hyperscale facilities under the xScale label, with plans to open over 32 facilities globally in the coming years.

Outgoing Equinix CEO Charles Meyers confirmed that the company is focusing on expanding its xScale facilities in the US through organic growth rather than acquisitions. However, he did not provide further details about the US expansion at that time. Earlier this year, Equinix initiated internal investigations following accusations by short seller Hindenburg Research of account manipulation and overselling power supply.