Equinix (EQIX) Announces Expansion of London Data Center

Shutterstock photo

Interconnection and data-center REIT, Equinix, Inc. EQIX , has announced its plan to expand the company's London data center. Specifically, the $39 million of investment will be made for expansion of the company's LD4 IBX data center at its London Slough campus.

This move will help the company address the growing demand from financial services companies. Particularly, the latest phase will support the expanding multi-asset class electronic trading ecosystem, comprising interconnected execution venues, trading platforms, market data vendors, service providers as well as buy-side and sell-side firms.

The expansion, which is slated to open in the fourth quarter this year, will lead to the addition of 1,075 cabinets in around 3,300 square meters of colocation area at the LD4 data center. LD4 currently has 3,777 cabinets, in about 10,000 square meters of colocation area.

Customers will benefit as they will be able to securely interconnect with more than 1,000 businesses in London. These comprise capital market participants, insurers and electronic payments firms, in addition to the several network service providers, and cloud and IT service providers.   

In an effort to securely transact with ecosystem participants, the Nasdaq capitalizes on Equinix's global interconnection platform, and has deployed with Equinix in LD4 in London and New York City. The private connectivity helps share huge data with multiple stakeholders via private business exchanges and securely dodging the public internet totally.

Moreover, in Europe, the interconnection bandwidth is projected to increase, reaching 1450+Tbps by 2020, per the Global Interconnection Index . Further, by 2020, Banking and Insurance is estimated to expand and reach 955+ Tbps of interconnection bandwidth. In addition, private data exchange is set to grow in London and in fact, increase fourfold to 486 Tbps from 114 Tbps. All these only make the current expansion move of Equinix a strategic fit.

In addition to this drive, recently Equinix joined forces with Telefónica's infrastructure subsidiary - Telxius - to work on the U.S. facilities and services for the next-generation cable landing station architecture, in a bid to support the MAREA and BRUSA cable systems. The move will simplify network design and offer Equinix's customers better access to the growing global subsea cable network.

Notably, the recently-opened MAREA subsea cable is a joint project with Facebook FB and Microsoft MSFT , and is the highest capacity subsea cable system built across the Atlantic. On the other hand, Telxius is building BRUSA, which is a new subsea cable stretching, 6,800 miles, and connecting Rio de Janeiro and Fortaleza, Brazil, with San Juan, Puerto Rico, and Virginia Beach, VA (USA).

With growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure, data-center REITs like Equinix and Digital Realty DLR are experiencing a boom market. Moreover, with the exponential rise in data, resulting from web browsing and e-commerce to streaming video and AI, there is a significant surge in new subsea cable construction. Amid these, such strategic measures of data-center expansion, partnerships and buyouts of Equinix augur well for its long-term growth.

Currently, Equinix has a Zacks Rank #3 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

However, the stock has depreciated 1.3% over the past three months, versus the 3.0% increase recorded by its industry.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Facebook, Inc. (FB): Free Stock Analysis Report

Equinix, Inc. (EQIX): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: FB , EQIX , MSFT , DLR

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?