) is aggressively moving ahead with its plan of developing more
data centers across different geographical locations. Moving on
those lines, the company recently declared its plan to build an
International Business Exchange (IBX) data center in Osaka,
The first of its kind in West Japan, the data center will
require an investment of $12 million in the first phase, which
will be operational by the fourth quarter of 2013. It will be
developed in collaboration with K-Opticom and Kanden Energy
Solutions (KENES), the technology access providers in
The company also expects that this data center will strengthen
the global network connectivity in the Osaka region and maintain
a direct connection with the network core in Dojima.
Equinix has four operational data centers in Japan in order to
be able to tap into the increasing demand for data centers in
Japan and the Asia Pacific region.
A recent data center industry report was published in the
'Computer News Middle East' (www.cnmeonline.com), by an
independent research firm - Campos Research & Analysis. As
per the study, which surveyed 401 senior decision makers from the
data center industry across Singapore, Australia, Hong Kong, and
Japan, 83.0% of the veterans plan to expand the number of data
centers through 2013 to 2014.
The main reasons behind the decision were increased security
needs by end users and the need to have a disaster recovery
system in place. Moreover, a strong preference has been witnessed
by the researchers among the respondents for the Asia Pacific
Equinix, being a major player in the data center space, is
making an effort to grab a major share of this increased demand
by renewing its focus on the Asia-Pacific and Japan (APJ) region.
The solid prospects in the region may be expected to drive its
Expansion in important markets and consolidation of facilities
inexisting ones have been part of Equinix's core strategy. Of
course, increasing competition from the likes of
), Equinix's European exposure and industry consolidation remain
Equinix carries a Zacks Rank #2 (Buy). Investors can also
consider other stocks such as
), having a Zacks Rank #1 (Strong Buy) and
) having a Zacks Rank #2 (Buy).
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