Equinix Inc (NASDAQ:EQIX) and PGIM Real Estate, the real estate investment and financing arm of PGIM, Prudential Financial, Inc.'s (NYSE:PRU) global asset management business, have entered into a joint venture.

The $600 million joint venture will develop and operate the first xScale data center in the U.S., located in the Silicon Valley region of California.

The two-story facility, to be known as SV12x, will be built in two phases and is expected to provide more than 28 megawatts (MW) of power capacity.

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

The new joint venture, along with others, 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.

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.

Price Action: EQIX shares are trading lower at 1.71% at $751.00 on the last check Monday.

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