Global data center service provider
) recently announced that it has opened its second International
Business Exchange (IBX) in Rio de Janeiro based on the platform
provided by ALOG Data Centers of Brazil S.A. This new Rio de
Janeiro data center, popularly known as RJ2, will enable Equinix
to meet the growing demand for data center services in the
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The RJ2 data center will provide approximately 320 cabinets, with
an additional provision for taking the count to 1170 cabinets.
Development costs are estimated to be $36.0 million. This newly
developed data center is the first Tier III-certified data center
in the city.
This expansion will maximise redundancy and connectivity, thereby
enabling mission-critical operation. The Tier III-certified data
center will provide better security and mitigate risk, which in
turn will enhance user satisfaction and help Equinix to expand
its customer base and market share.
Earlier, Equinix had announced its intention of expanding
operations in Brazil. The company also secured a couple of new
contracts, which will likely improve its business volume and
strengthen its market position.
Equinix's data center platform has been popular in the financial
services, networking and content management industries. Equinix
has taken advantage of the fact that many firms in these
industries are setting up their bases in South America. Seeing
the growth prospects in the region, particularly in Brazil, we
believe that Equinix will be able to secure a solid revenue
Equinix, is also renewing its focus on the Asia-Pacific and Japan
(APJ) region. However, increasing competition from the likes of
), European exposure and industry consolidation remain headwinds.
Equinix carries a Zacks Rank #4 (Sell). Investors should instead
consider other stocks such as
Semiconductor Manufacturing International Corp.
Arris Group Inc.
), both having a Zacks Rank #1 (Strong Buy).