Back to top

Analyst Blog

The global data center company, Equinix Inc. (EQIX - Analyst Report), is making all possible moves to expand its foothold in Singapore. The company rolled out its third International Business Exchange (IBX) center and expanded its second data center in that region.

The expansion plan is in line with Equinix’s current strategy, which will help strengthen its grip in the financial and cloud service market in Singapore. The company also sensed the increasing demand of its data center space in Singapore and other Asia-Pacific regions.

The third data center, covering a gross floor area of 385,000 square feet, will become operational in the second half of 2014. The cost involved is expected to range between $50 and $55 million.

Sensing the data center opportunity in Singapore, Oracle (ORCL - Analyst Report) recently housed a data center in the Equinix campus. Throough this data center, Oracle will serve customer needs for Oracle Fusion Applications, which include applications such as Enterprise Resource Planning, Human Capital Management, Talent Management, Sales and Marketing, and other such important aspects of the business.

The demand for data centers in the Asia-Pacific region is confirmed by a research report published by Gartner. As per the report, the total public cloud services market size is expected reach a level of $206.6 billion in 2016. Emerging markets like India, Indonesia and China will witness high growth rates and require more data center space.

Although deal wins are adding to the company’s revenue, the high debt level has resulted in higher interest costs. In spite of all the positives, rising competition from the likes of AT&T Inc. (T - Analyst Report) remains a concern. European exposure and industry consolidation are the other headwinds.

Equinix carries a Zacks Rank #2 (Buy). Investors can also consider other stocks such as Symantec Corp. (SYMC - Analyst Report), which also has a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
PANTRY INC PTRY 21.02 +2.09%
INTEL CORP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%