Equinix, Inc. (EQIX Quick QuoteEQIX - Free Report) recently opened a new International Business Exchange (“IBX”) data center in Frankfurt. The new site named FR8 will cater to the rising demand for private connectivity and digital infrastructure in Germany.

With Frankfurt being a European financial capital and a leading data hub, this addition is in line with Equinix’s strategy to enhance its data-center capacity in key markets and strengthen the company’s competitive positioning and global reach.

The first phase of this new site adds 4,800 m² to the company's co-location space. With a direct access to a global digital ecosystem of more than 10,000 companies, it will help customers interconnect and innovate business successfully.

Equinix has made a total investment of $103 million for the new build. The carrier-neutral FR8 will offer a wide range of inter-connection and colocation services, including Equinix Fabric, Network Edge and Equinix Metal, to enterprises across all sectors. Equinix Fabric helps enterprises quickly and flexibly connect to the leading cloud and network providers globally. With Network Edge, customers can virtually modernize networks, while Equinix Metal enables them to configure and provision physical infrastructure within minutes.

Equinix is well positioned globally to bank on the robust demand for data-center spaces with its Platform Equinix, which comprises more than 230 data centers across 65 metros and 27 countries.

Robust growth in cloud computing, the Internet of Things and big data, and a greater call for third-party IT infrastructure are spurring the demand for data-center infrastructure. Furthermore, growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets will likely be solid in the upcoming year.

As infrastructure providers for the rapidly-growing digital economy, data-center landlords, such as Equinix, Digital Realty Trust (DLR Quick QuoteDLR - Free Report) , CyrusOne Inc. and CoreSite Realty Corporation (COR Quick QuoteCOR - Free Report) , are well placed for sustainable growth.

However, stiff competition is likely to result in an aggressive pricing pressure.

Shares of Equinix have gained 16.5% over the past six months, outperforming the industry's growth of 11%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.