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Equinix (EQIX) Expands in Mumbai to Tap India's Digital Growth
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In a strategic move to capitalize on India's burgeoning digital economy, Equinix, Inc. (EQIX - Free Report) , the global leader in digital infrastructure, has announced a $42 million investment to establish its fourth International Business Exchange (“IBX”) data center in Mumbai. This new facility, aptly named MB4, is poised to address the escalating demand for cutting-edge data centers and interconnection services while supporting both local and overseas businesses in their digital transformation endeavors.
India's digital economy is on an upward trajectory, anticipated to reach a monumental $1 trillion mark by 2026, according to a media report. Equinix's timely expansion in Mumbai positions it at the forefront of this remarkable growth story. The investment will play a pivotal role in providing the foundation for businesses to harness the power of digitalization, propelling them toward accelerated growth and innovation.
The Indian data center industry, as reported by Jones Lang LaSalle (JLL - Free Report) , had a capacity of 637 MW in the first half of 2022 and is projected to grow significantly, reaching 1,318 MW by 2024. Moreover, the Equinix Global Tech Trends Survey 2023 reinforces the significance of this move, revealing that a substantial 85% of IT leaders surveyed in India have plans to increase spending on interconnection within the next 12 months.
MB4, scheduled to be available in the fourth quarter of 2023 (subject to regulatory approvals), is set to address this heightened demand, bolstering Equinix's digital infrastructure capacity in India. The facility will offer expanded connectivity options to major telecom networks.
Moreover, the facility will enable Metro Connect availability, strengthening Equinix's network by integrating with the highly connected Equinix data center sites of MB1 and MB2. Initially offering a capacity of 350 cabinets in its first phase, the facility's full potential is projected to encompass 700 cabinets upon completion.
Equinix's expansion is not confined to India. EQIX operates an impressive network of 250 data centers across 71 metros worldwide. In the Asia-Pacific region, Equinix currently manages 52 data centers spread across key metros, including Australia, China, Hong Kong, Japan, Korea, and Singapore. The company's strategic plans extend further, with recent announcements to enter the promising markets of Malaysia and Indonesia to facilitate the expansion of businesses in these emerging economies.
This expansion aligns with Equinix's continued focus on India's burgeoning digital landscape. The company already operates two IBX data centers in Mumbai, MB1 and MB2, serving as home to the digital infrastructure of more than 300 international and local companies. These data centers offer access to globally renowned cloud service providers, including Amazon Web Services, Google Cloud and Oracle Cloud.
Furthermore, they host a spectrum of global networks, content delivery network providers, local carriers, more than 165 internet service providers (ISPs) and five internet exchanges. The Platform Equinix empowers businesses to seamlessly interconnect with these providers and their own global IBX deployments through on-demand, self-service connectivity.
The promising Indian market has also caught the attention of Digital Realty (DLR - Free Report) , a major player in the data center realm. The company's recent three-way joint venture with Brookfield Infrastructure and Reliance Industries further exemplifies the industry's recognition of India's digital potential.
The joint venture, aptly named Digital Connexion: A Brookfield, Jio, and Digital Realty Company, marks a collaborative effort to establish data center campuses on existing strategic land parcels in Chennai and Mumbai. As each partner holds a one-third stake, this partnership solidifies a united commitment to providing the essential infrastructure to propel India's digital future.
In conclusion, Equinix's expansion in Mumbai stands as a testament to its foresight and commitment to driving India's digital transformation. The establishment of MB4 not only addresses the surging demand for data centers and interconnection services but also positions Equinix as a linchpin in India's digital journey. As India's economy hurtles toward a trillion-dollar digital future, EQIX is poised to play a pivotal role in shaping the digital landscape, fostering innovation and enabling businesses to thrive in the digital age.
Shares of this Zacks Rank #3 (Hold) company have risen 4.7% in the past three months compared with the real estate market’s growth of 2%.
Image Source: Zacks Investment Research
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Equinix (EQIX) Expands in Mumbai to Tap India's Digital Growth
In a strategic move to capitalize on India's burgeoning digital economy, Equinix, Inc. (EQIX - Free Report) , the global leader in digital infrastructure, has announced a $42 million investment to establish its fourth International Business Exchange (“IBX”) data center in Mumbai. This new facility, aptly named MB4, is poised to address the escalating demand for cutting-edge data centers and interconnection services while supporting both local and overseas businesses in their digital transformation endeavors.
India's digital economy is on an upward trajectory, anticipated to reach a monumental $1 trillion mark by 2026, according to a media report. Equinix's timely expansion in Mumbai positions it at the forefront of this remarkable growth story. The investment will play a pivotal role in providing the foundation for businesses to harness the power of digitalization, propelling them toward accelerated growth and innovation.
The Indian data center industry, as reported by Jones Lang LaSalle (JLL - Free Report) , had a capacity of 637 MW in the first half of 2022 and is projected to grow significantly, reaching 1,318 MW by 2024. Moreover, the Equinix Global Tech Trends Survey 2023 reinforces the significance of this move, revealing that a substantial 85% of IT leaders surveyed in India have plans to increase spending on interconnection within the next 12 months.
MB4, scheduled to be available in the fourth quarter of 2023 (subject to regulatory approvals), is set to address this heightened demand, bolstering Equinix's digital infrastructure capacity in India. The facility will offer expanded connectivity options to major telecom networks.
Moreover, the facility will enable Metro Connect availability, strengthening Equinix's network by integrating with the highly connected Equinix data center sites of MB1 and MB2. Initially offering a capacity of 350 cabinets in its first phase, the facility's full potential is projected to encompass 700 cabinets upon completion.
Equinix's expansion is not confined to India. EQIX operates an impressive network of 250 data centers across 71 metros worldwide. In the Asia-Pacific region, Equinix currently manages 52 data centers spread across key metros, including Australia, China, Hong Kong, Japan, Korea, and Singapore. The company's strategic plans extend further, with recent announcements to enter the promising markets of Malaysia and Indonesia to facilitate the expansion of businesses in these emerging economies.
This expansion aligns with Equinix's continued focus on India's burgeoning digital landscape. The company already operates two IBX data centers in Mumbai, MB1 and MB2, serving as home to the digital infrastructure of more than 300 international and local companies. These data centers offer access to globally renowned cloud service providers, including Amazon Web Services, Google Cloud and Oracle Cloud.
Furthermore, they host a spectrum of global networks, content delivery network providers, local carriers, more than 165 internet service providers (ISPs) and five internet exchanges. The Platform Equinix empowers businesses to seamlessly interconnect with these providers and their own global IBX deployments through on-demand, self-service connectivity.
The promising Indian market has also caught the attention of Digital Realty (DLR - Free Report) , a major player in the data center realm. The company's recent three-way joint venture with Brookfield Infrastructure and Reliance Industries further exemplifies the industry's recognition of India's digital potential.
The joint venture, aptly named Digital Connexion: A Brookfield, Jio, and Digital Realty Company, marks a collaborative effort to establish data center campuses on existing strategic land parcels in Chennai and Mumbai. As each partner holds a one-third stake, this partnership solidifies a united commitment to providing the essential infrastructure to propel India's digital future.
In conclusion, Equinix's expansion in Mumbai stands as a testament to its foresight and commitment to driving India's digital transformation. The establishment of MB4 not only addresses the surging demand for data centers and interconnection services but also positions Equinix as a linchpin in India's digital journey. As India's economy hurtles toward a trillion-dollar digital future, EQIX is poised to play a pivotal role in shaping the digital landscape, fostering innovation and enabling businesses to thrive in the digital age.
Shares of this Zacks Rank #3 (Hold) company have risen 4.7% in the past three months compared with the real estate market’s growth of 2%.
Image Source: Zacks Investment Research
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.