Accelerates Enablement of U.S. Public Sector IT Transformation

Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced it has completed the integration of Terremark Federal Group (TFG) into Equinix Government Solutions.

The move marks the completion of the final component of last year’s acquisition of 29 data centers from Verizon, which included TFG and secure data center facilities designed to serve the specific needs of the U.S. Federal Government ecosystem.

The integration of TFG expands Equinix’s contract vehicles, federal industry expertise and capabilities in delivering secure interconnection and data center solutions for Federal agencies, systems integrators and civilian research and education groups, as they transform how public sector information technology is architected and delivered. By deploying at Equinix International Business Exchange™ (IBX®) data centers, these key participants in the Federal ecosystem can easily scale their direct connectivity to critical counterparties for the exchange of cloud-based data at the edge—a key requirement as they undergo IT modernization efforts.

TFG, acquired by Verizon in 2011, has a long and successful track record in servicing government interconnection solutions and cloud-enabled initiatives. As a part of Equinix Government Solutions, it will operate from multiple Equinix IBX data centers in the U.S., with the largest footprints in the Culpeper and Miami areas. Thirty-three TFG personnel, all of whom possess government security clearances, are now Equinix employees, and bring a deep understanding of the Federal sector to act as trusted advisors for IT transformation initiatives.

Highlights/Key Facts

• Equinix IBX data centers are home to the top cloud service providers, including Amazon Web Services, Google Cloud Platform, IBM Cloud, Microsoft Azure, SAP and Oracle Cloud, among others. Federal ecosystem participants will be able to directly connect with these strategic partners at Equinix and utilize their portfolio of government cloud services.
• Equinix is a provider of colocation, interconnection and data center services that meet the government’s stringent standards for secure facilities. This includes the overall design of its IBX data centers as well as procedures for access control. Its IBX data centers comply with the rigorous standards and compliance needs of the government ecosystem, including FISMA High (U.S. only), NIST 800/53, FedRAMP (in process), SOC 1 Type II, SOC 2 Type II, ISO 27001, HIPAA and PCI DSS.
• The Equinix Culpeper data center campus, strategically located 60 miles from Washington, D.C., is the hub of the Equinix Government Solutions practice, and it represents one of the most secure and technologically sophisticated data center campuses in the eastern U.S. Formerly known as the NAP (Network Access Point) of the Capital Region (NCR), it includes the Equinix CU1, CU2, CU3, CU4 International Business Exchange (IBX) data centers.
• Equinix Government Solutions provides comprehensive, secure colocation solutions, managed network connectivity, and interconnection services, including direct and secure access to more than 2,900 cloud and managed IT service providers.
• Federal hybrid cloud spend is a large market and is projected to grow at an 11% CAGR from $113.7 million in 2016 to $191.2 million in 2021, according to IDC’s U.S. Federal Government Cloud Forecast, 2017-2021.1
Quotes
• Adelaide O’Brien, Research Director, Government Digital Transformation Strategies, IDC Government Insights

“Secure interconnection and data center solutions are critical to the federal government’s need for secure access to data, and the ability to design and test key capabilities such as machine learning on data—prior to deploying within the agency. That Equinix is in compliance with FISMA High, and is undergoing FedRAMP certification, are additional benefits for agencies seeking to limit their risk management posture.”
• Karl Strohmeyer, President, Americas, Equinix:

“The assets and expertise acquired through our transaction with Verizon now firmly position Equinix as a leader in providing innovative and strategic solutions for the unique needs of the Federal ecosystem, led by David Peed, Vice President of Equinix Government Solutions. This integration is a win for existing and future Federal customers who can now leverage our global platform for connectivity to the government cloud within a secure environment.”

Forward-Looking Statements

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, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue 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; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent 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.