(Reuters) - Data center firm Equinix ( EQIX ) is forming a joint venture with Singapore'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 ( EQIX ) 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 IT'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 ( EQIX ) is looking to scale, are typically used by hyperscalers, which include the world's biggest technology companies such as Amazon, Microsoft and Alphabet's Google.

The joint venture will nearly triple the investment in Equinix's ( EQIX ) 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 ( EQIX ) will own 25%, Equinix ( EQIX ) said.

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

THE CONTEXT

Equinix ( EQIX ) has enjoyed strong growth in recent quarters powered by demand for its data centers, with the company raising its annual core earnings forecast in August.

It has also been eyeing expansion in the high-growth potential region of Southeast Asia, acquiring three data centers in the Philippines earlier this year.

The company already has a partnership with Singapore's GIC for hyperscale projects across regions.