Equinix has announced the opening of a second International Business Exchange (IBX) data center based in Singapore. Equinix (Nasdaq: EQIX) is a provider of global data center services, and the move’s cost has run up a cost of forty five million dollars. Equinix has been rapidly growing and their first singapore server (SG1) is running near full capacity, necessitating the move.

Equinix attributes the increased demand to “increasing traction from companies throughout South Asia and financial trading companies”. Basically the growth of South Asia at this current time is one of the prime factors, as the data center is the most reliable and convenient choice for businesses in the region.

Steve Smith, president and CEO of Equinix gave an explanation:

“Singapore is a strategic market to Equinix and the company’s SG1 center is the most network-dense data center in the country. We’ve seen continued strong demand in the region and even with the recent completion of the phase 4 expansion of the SG1 center in Q2 2009, SG1 is reaching maximum capacity. Today’s opening of the SG2 center will enable Equinix to continue to meet customer demand while planning for SG2’s second phase, with construction expected to start in Q2 2010.”

This news comes on the heels of their quite impressive second quarter report which stated that they had increased quarterly revenues to 213 million dollars which was a 24% increase from the same quarter in 2008, and a seven percent increase from the previous quarterly report. The company may soon be nearing the one billion dollars annually milestone soon, so $45 million dollars is now a far less significant number in their costs and will be far easier for Equinix to absorb.

The move is also significant for Singapore as a country, with some bureacrats even taking positive notice. Leo Yip, Chairman of the Singapore Economic Development Board, gave a statement:

“Equinix’s investment reinforces Singapore’s position as a global IT hub and home for businesses seeking to expand in Asia. There is a rapidly growing market for connectivity and data hosting in Asia. The opening of Equinix’s second data center is therefore timely as more companies choose Singapore as their data hub to leverage on new growth opportunities in the region.”

Considering Singapore GDP is roughly $180 billion, it is considerably important for them to woo the nearly billion dollars annually in revenue company to do more business with them to solidify the former naval hub as a new global Information Technology (IT) hub.