Company intends to invest $15 million to upgrade the center; will provide additional space to respond to strong customer demand.

Equinix, Inc., a provider of network-neutral data centers and Internet exchange services, having opened its third Silicon Valley data center earlier this year, today announced the aquisition of a fourth center.

The center will be interconnected to Equinix's three other Silicon Valley centers through redundant dark fiber links managed by Equinix, enabling new customers in each center to have direct access to the more than 50 networks already operating in Equinix's Silicon Valley centers. It will also feature a physical infrastructure that is consistent with Equinix's standards for high-performance, security, environmental control and power availability.

With more than 200 network service providers, the top web properties and hundreds of other companies operating within its IBX centers, Equinix's neutral, network-rich centers are widely recognized as the hubs for the exchange of core Internet traffic, according to the company.

"Our current momentum, expansion opportunities and competitive position are solidifying Equinix's market leadership position," said Peter Van Camp, CEO of Equinix. "We continue to see attractive opportunities to acquire additional centers in our highest growing markets. As we pursue this, the team at Equinix believes it has the opportunity to build an enterprise generating annual revenues of $500 million over time."

"As a result of our second quarter momentum, we are raising guidance for 2005 and increasing our outlook for second quarter EBITDA results," said Renée Lanam, CFO of Equinix. "The Silicon Valley expansion is included in this increased guidance, while other possible expansions in 2005 are not expected to negatively impact EBITDA guidance."

Equinix intends to open the new center for customers in mid-2006. It will hold a conference call to discuss expansion strategy and increased guidance on Thursday.