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Equinix to Expand Cloud Exchange in 3 European Markets

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Expansion in important markets has been an important part of Equinix Inc.'s (EQIX - Free Report) core strategy. In this regard, Equinix recently revealed its plans of expanding the accessibility of Equinix Cloud Exchange in Europe, which includes three new markets (Dublin, Milan and Stockholm).  This will enable the company to meet the fast-growing demand for security and data services globally.

This will also help Equinix offer customers the benefit of its cloud infrastructure, including a secure connection, outstanding scalability and infrastructure dependability.

The Equinix Cloud Exchange provides seamless, on-demand and direct access to multiple clouds, across multiple global networks. These virtual circuit connections allow customers to use the cloud of their choice with dedicated, low-latency connections.

Also, the expansion will enable Equinix’s customers to gauge the performance of application-based platforms from secure International Business Exchange (IBX) data centers. This new solution will enhance user satisfaction and help Equinix expand its customer base and market share.

Bottom Line

Equinix remains positive on the growing demand for data centers. To this end, the global interconnection and data center company is expanding its IBX data centers globally and gaining popularity among tech companies looking for data management. Thus, the company expects its total addressable market for retail data centers to increase at a CAGR of 8% from 2013 to 2017 and reach $24 billion. Based on this, Equinix projects a revenue growth rate of 10% through 2017.

Therefore, we believe that by expanding its data center assets, Equinix will be in a better position to capitalize on this opportunity. Moreover, the expansion will help the company to further strengthen its global footprint and bring in additional revenues.

Shares of Equinix have been trading higher on a year-to-date basis. The stock returned approximately 7.3% compared with the Zacks REIT-Equity Trust industry’s loss of 4%.

Nonetheless, Equinix competes with established communications carriers such as AT&T (T - Free Report) , Level 3 Communications and Verizon Communications (VZ - Free Report) , which also operate date centers.

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

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