Equinix (EQIX) to Set Foot in Bordeaux with New Data Center
Zacks Investment Research | Mar 05, 2021 04:25AM ET
Equinix (NASDAQ:EQIX), Inc. EQIX announced plans to open its first data center in Bordeaux, France, in third-quarter 2021. This will be the first carrier-neutral data center in the city.
The new facility, named BX1, will have direct fiber links to Equinix's International Business Exchange (IBX) sites in Paris. This will enable global businesses and local authorities in New Aquitaine to establish direct and safe connectivity to the world's digital economy. BX1 is expected to offer 32,000 square feet of colocation space.
BX1 will also be a new European gateway for data traffic between the United States and Europe by offering a landing hub for the new submarine cable, AMITIE. This will bolster the facility’s connectivity opportunities.
Notably, Bordeaux has emerged as a new global connectivity hub by attracting notable start-ups and cutting-edge industries such as aerospace and optics photonics. Given the growing demand for low latency, increased bandwidth and strong connectivity by businesses, Equinix’s expansion of its French footprint to the city is a strategic fit and will enable it to see significant leasing activity.
Per management, “the Bordeaux hub will serve as one of the key connectivity points to Paris with its rich wide-ranging digital ecosystems. BX1 aims to greatly increase international expansion opportunities for French companies, whilst providing a major connectivity hub from and to the French and global digital economy."
Markedly, Equinix plans to add more data centers in the coming quarters to capitalize on the growing demand for colocation and interconnection services.
Although such moves are strategic fits, it requires huge capital outlays. Given the company’s significant debt obligations, these capital-intensive activities are concerning.
Equinix currently carries a Zacks Rank #3 (Hold). In the past six months, the company’s shares have declined 19.8% against the real estate market’s rally of 10.9%.
Get The News You Want
Alpine Income Property Trust, Inc.’s .
Extra Space Storage (NYSE:EXR) Inc.’s EXR Zacks Consensus Estimate for 2021 FFO per share has moved up 2.5% to $5.66 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
JBG SMITH Properties JBGS Zacks Consensus Estimate for 2021 FFO per share has been unchanged at $1.48 in a month’s time. The company has a Zacks Rank of 2 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
h3 Time to Invest in Legal Marijuana/h3If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9% You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential. Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.