Oct 1 Reuters Data center firm Equinix is forming a joint venture with Singapore39;s sovereign wealth fund GIC and Canada Pension Plan Investment Board with goals to raise more than 15 billion in capital, the company said on Tuesday.

Equinix and its partners will use the capital to expand the U.S. footprint of hyperscale data centers, which are the largest in the industry, offering massive networking capacity and typically consuming as much power as a big city.

WHY IT39;S IMPORTANT

The announcement comes at a time when companies across industries are racing to deploy artificial intelligence technologies in their operations, fueling demand for the immense computing power and storage provided by data centers.

Large data centers, such as the ones Equinix is looking to scale, are typically used by hyperscalers, which include the world39;s biggest technology companies such as Amazon, Microsoft and Alphabet39;s Google.

The joint venture will nearly triple the investment in Equinix39;s hyperscale center program, purchasing land for new facilities and adding over 1.5 gigawatts of new capacity over time.

BY THE NUMBERS

Canada Pension Plan Investment Board, or CPP Investments, and GIC will each control a 37.5 equity interest in the JV, while Equinix will own 25, Equinix said.

The JV will also take on debt to eventually raise the total investable capital to more than 15 billion.

THE CONTEXT

Equinix has enjoyed strong growth in recent quarters powered by demand for its data…