Digital infrastructure company Equinix, Inc. (NASDAQ:EQIX) and PGIM Real Estate, the real estate investment and financing arm of PGIM, Prudential Financial’s global asset management business, today announced the entry into a $600 million joint venture to develop and operate the first xScale data center in the U.S., located in the Silicon Valley region of California.

The two-story facility, which will be known as SV12x, will be built out in two phases and is expected to provide more than 28 megawatts (MW) of power capacity at full build out. SV12x is located at Equinix’s Great Oaks data center campus in San Jose, California alongside four existing Equinix International Business ExchangeTM (IBX) data centers.

The first phase of the facility is scheduled to be completed in Q2 2024.

This agreement represents the second joint venture between Equinix and PGIM Real Estate.

Combined with Equinix’s existing hyperscale joint ventures in Europe, Asia-Pacific and elsewhere in the Americas, this new joint venture will bring the global xScale data center portfolio to more than $8 billion across more than 35 facilities, and an expected greater than 725 megawatts of power capacity when completed and fully constructed.

Equinix xScale data centers enable hyperscale companies to add core deployments to their existing access point footprints at Equinix IBX data centers, enabling their growth on a single platform that can immediately span more than 70 global metros and offer direct interconnection to an ecosystem of more than 10,000 customers.

Under the terms of the agreement, PGIM Real Estate will control an 80% equity interest in the joint venture, and Equinix will own the remaining 20% equity interest.

PGIM Real Estate has been investing in the data center sector since 2013. This latest joint venture agreement with Equinix marks the first investment made through PGIM Real Estate’s dedicated global data center strategy, managed on behalf of third-party clients, to invest exclusively in hyperscale facilities located across internet gateway markets in the U.S., Europe, and Asia-Pacific.