Oct 1 (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 ( AMZN ),

Microsoft ( MSFT ) 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.