Digital Realty ( DLR Quick Quote DLR - Free Report) recently announced the availability of Amazon Web Services (AWS) Direct Connect 100Gbps connections on PlatformDIGITAL® in Seattle and Dublin. For AWS customers, the low-latency, high-availability connections at strategic centers of data exchange opens up scope for growth and tackles data-gravity issues. Per management, “opening of AWS Direct Connect 100Gbps on-ramps significantly expands opportunities for customers to scale their digital transformation through our global PlatformDIGITAL®." The latest deployment of the AWS capabilities has taken place at the company's Westin Building Exchange in Seattle and on its Interxion Dublin Campus in Ireland. The move is a strategic fit, and the Westin Building Exchange serves as a primary inter-connection hub for the Pacific Northwest, linking Canada, Alaska and Asia along the Pacific Rim. This densely inter-connected facility in North America is home to prominent global cloud, content and inter-connection providers. Moreover, Interxion Dublin serves as a prime location for the new AWS Direct Connect 100Gbps. Ireland is an important global trading hub and serves as headquarters location for numerous global multi-nationals in the software, finance and life-science industries. In addition, multiple transatlantic cables land in Ireland before continuing to the U.K. or continental Europe. Markedly, the company is building its global data-center platform — PlatformDIGITAL® — to leverage on the favorable trends as industries speed up digital transformations globally. Recently, the company also announced new data centers in downtown Toronto, Canada and Marseille, France, in a bid to boost its presence across the globe. Notably, data-center REITs are seeing a market boom, with growth in cloud computing, IoT and big data, and an increasing number of companies opting for third-party IT infrastructure. Growth rates for the AI, autonomous vehicle and virtual/augmented reality markets are estimated to remain robust over the next five to six years. Moreover, data centers are poised to benefit from the rising reliance on technology in the wake of the coronavirus pandemic. Demand is strong in top-tier data-center markets and despite enjoying high occupancy, these markets are absorbing new constructions at a faster pace. These are anticipated to fuel demand for data centers. Thus, data-center REITs like Digital Realty, Equinix, Inc. ( EQIX Quick Quote EQIX - Free Report) , CyrusOne Inc. ( CONE Quick Quote CONE - Free Report) and CoreSite Realty Corporation ( COR Quick Quote COR - Free Report) will likely keep witnessing significant demand. Banking on such factors and backed by a healthy balance sheet, Digital Realty is expanding its portfolio on accretive acquisition and development efforts, growing the company’s presence outside America. However, aggressive pricing pressure is likely to prevail in the upcoming period amid the competitive landscape. Digital Realty currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have gained 17.8%, outperforming the industry’s rally of 17.2%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Image Source: Zacks Investment Research 5 Stocks Set to Double
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