We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equinix (EQIX) Expands Malaysia Footprint With New Data Center
Read MoreHide Full Article
Continuing with its efforts to broaden its footprint in Malaysia, Equinix, Inc. (EQIX - Free Report) unveils plans for its first International Business Exchange (IBX) data center in Cyberjaya, Kuala Lumpur, with an investment of more than $100 million. In November 2022, Equinix disclosed plans to build a new data center in Malaysia’s Nusajaya Tech Park in Iskandar, Johor.
Malaysia is turning out to be a strategic regional hub for digital interconnection between businesses amid robust cloud growth and e-commerce adoption, and its continued investment in 5G. The country has become the third largest data center colocation market in the Association of Southeast Asian Nations (“ASEAN”) region. Hence, with Malaysia entering Phase 2 of the government’s MyDIGITAL blueprint for a digital economy, EQIX’s expansion into this region seems prudent.
The new data center, KL1, slated to begin operations in the first quarter of 2024, will provide a capacity of 450 cabinets and colocation space of 1,300 square meters initially. Upon completion, the same will be well-equipped to provide a total of 900 cabinets and a colocation space of 2,630 square meters.
The facility is strategically located in Cyberjaya, a significant part of the Malaysian government-designated zone — Multimedia Super Corridor — aimed at promoting and boosting the country’s digital economy.
EQIX targets to address the growing demand from local and global companies expanding in the region by enriching the digital infrastructure capacity. With KL1, global networks, content providers and enterprises can exchange high volumes of Internet traffic through Equinix Internet Exchange, one of the world's largest global peering solutions at scale.
Additionally, through KL1 and Equinix Fabric, customers will be able to deploy their infrastructure to connect with the world's leading cloud service providers, including Alibaba Cloud, Amazon Web Services (AWS), Google Cloud and Microsoft Azure. This will safeguard their business-critical data in a private and secure environment.
Per Jeremy Deutsch, president, Asia-Pacific, Equinix, “By expanding Platform Equinix® in the two most strategic metros in Malaysia, we will enable Malaysian businesses, as well as multinationals with a presence in Malaysia, to leverage a trusted platform to bring together and interconnect the foundational infrastructure to power their success.”
At present, in the Asia-Pacific region, EQIX has 51 data centers across 13 metros across Australia, China, Hong Kong, India, Japan, Korea and Singapore, with expansions announced in Indonesia and Malaysia.
Data center REITs like Equinix are benefiting from the robust demand for data center infrastructure amid enterprises’ growing reliance on technology and acceleration in digital transformation strategies. Growth in cloud computing, the Internet of Things and elevated demand for third-party IT infrastructure have backed the upside.
Moreover, growth in artificial intelligence, as well as autonomous vehicle and virtual/augmented reality markets, is expected to be robust over the next five-six years, providing excellent growth opportunities for this data center REIT.
Amid this backdrop, the company has been making concerted efforts to tap such growth opportunities through acquisitions and development efforts.
This April, Equinix announced its plans for a new state-of-the-art IBX data center in Montreal, a key economic center in Canada and globally, with an investment of $50 million. The new MT2 data center, expected to open in the second half of 2023, will enhance EQIX’s footprint in Canada to 16 high-quality IBX data centers coast to coast and add more than 37,000 square feet of colocation space.
With a solid balance-sheet position and ample financial flexibility, Equinix remains well-positioned to capitalize on long-term growth opportunities.
Shares of this Zacks Rank #3 (Hold) company have gained 13.6% in the year-to-date period compared with the real estate market’s growth of 0.2%.
The Zacks Consensus Estimate for Rexford Industrial’s current-year funds from operations (FFO) per share has moved 1.4% northward over the past two months to $2.19.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share has been raised marginally upward over the past two months to $2.25.
The Zacks Consensus Estimate for Innovative Industrial Properties’ 2023 FFO per share has moved 3.6% upward in the past two months to $8.66.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Equinix (EQIX) Expands Malaysia Footprint With New Data Center
Continuing with its efforts to broaden its footprint in Malaysia, Equinix, Inc. (EQIX - Free Report) unveils plans for its first International Business Exchange (IBX) data center in Cyberjaya, Kuala Lumpur, with an investment of more than $100 million. In November 2022, Equinix disclosed plans to build a new data center in Malaysia’s Nusajaya Tech Park in Iskandar, Johor.
Malaysia is turning out to be a strategic regional hub for digital interconnection between businesses amid robust cloud growth and e-commerce adoption, and its continued investment in 5G. The country has become the third largest data center colocation market in the Association of Southeast Asian Nations (“ASEAN”) region. Hence, with Malaysia entering Phase 2 of the government’s MyDIGITAL blueprint for a digital economy, EQIX’s expansion into this region seems prudent.
The new data center, KL1, slated to begin operations in the first quarter of 2024, will provide a capacity of 450 cabinets and colocation space of 1,300 square meters initially. Upon completion, the same will be well-equipped to provide a total of 900 cabinets and a colocation space of 2,630 square meters.
The facility is strategically located in Cyberjaya, a significant part of the Malaysian government-designated zone — Multimedia Super Corridor — aimed at promoting and boosting the country’s digital economy.
EQIX targets to address the growing demand from local and global companies expanding in the region by enriching the digital infrastructure capacity. With KL1, global networks, content providers and enterprises can exchange high volumes of Internet traffic through Equinix Internet Exchange, one of the world's largest global peering solutions at scale.
Additionally, through KL1 and Equinix Fabric, customers will be able to deploy their infrastructure to connect with the world's leading cloud service providers, including Alibaba Cloud, Amazon Web Services (AWS), Google Cloud and Microsoft Azure. This will safeguard their business-critical data in a private and secure environment.
Per Jeremy Deutsch, president, Asia-Pacific, Equinix, “By expanding Platform Equinix® in the two most strategic metros in Malaysia, we will enable Malaysian businesses, as well as multinationals with a presence in Malaysia, to leverage a trusted platform to bring together and interconnect the foundational infrastructure to power their success.”
At present, in the Asia-Pacific region, EQIX has 51 data centers across 13 metros across Australia, China, Hong Kong, India, Japan, Korea and Singapore, with expansions announced in Indonesia and Malaysia.
Data center REITs like Equinix are benefiting from the robust demand for data center infrastructure amid enterprises’ growing reliance on technology and acceleration in digital transformation strategies. Growth in cloud computing, the Internet of Things and elevated demand for third-party IT infrastructure have backed the upside.
Moreover, growth in artificial intelligence, as well as autonomous vehicle and virtual/augmented reality markets, is expected to be robust over the next five-six years, providing excellent growth opportunities for this data center REIT.
Amid this backdrop, the company has been making concerted efforts to tap such growth opportunities through acquisitions and development efforts.
This April, Equinix announced its plans for a new state-of-the-art IBX data center in Montreal, a key economic center in Canada and globally, with an investment of $50 million. The new MT2 data center, expected to open in the second half of 2023, will enhance EQIX’s footprint in Canada to 16 high-quality IBX data centers coast to coast and add more than 37,000 square feet of colocation space.
With a solid balance-sheet position and ample financial flexibility, Equinix remains well-positioned to capitalize on long-term growth opportunities.
Shares of this Zacks Rank #3 (Hold) company have gained 13.6% in the year-to-date period compared with the real estate market’s growth of 0.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Rexford Industrial Realty (REXR - Free Report) , Stag Industrial (STAG - Free Report) and Innovative Industrial Properties (IIPR - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Rexford Industrial’s current-year funds from operations (FFO) per share has moved 1.4% northward over the past two months to $2.19.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share has been raised marginally upward over the past two months to $2.25.
The Zacks Consensus Estimate for Innovative Industrial Properties’ 2023 FFO per share has moved 3.6% upward in the past two months to $8.66.
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.