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Equinix, Telxius Team Up for Cable Landing Station Design

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Interconnection and data center REIT — Equinix, Inc. (EQIX - Free Report) — has joined forces with Telefónica's infrastructure subsidiary, Telxius, to work on the U.S. facilities and services for the next-generation cable landing station architecture, in a bid to support the MAREA and BRUSA cable systems.

The move will simplify network design and offer Equinix’s customers better access to the growing global subsea cable network.

Specifically, termination of the two subsea cables will take place directly into the MAREA and BRUSA cable landing station situated at Virginia Beach, VA, and the backhaul capacity gets extended into the Equinix DC2 IBX data center. Through a simple cross connect from any IBX data center, customers of Equinix will enjoy direct accessibility to the MAREA and BRUSA cable systems.

According to Jim Poole, vice president, business development, Equinix, “That means any user of a subsea cable system that lands inside one of our Equinix global data center termination points has instant, low-latency access to a host of vibrant industry ecosystems inside Equinix, and that's a huge advantage."

Notably, the recently-opened MAREA subsea cable is a joint project with Facebook (FB - Free Report) and Microsoft (MSFT - Free Report) and is the highest capacity subsea cable system built across the Atlantic. Comprising eight fiber pairs, the 4,000-miles subsea cable will connect Virginia Beach, VA, and Sopelana (near Bilbao), Spain. In charge of the operation of the cable, Telxius leverages its IP, capacity, colocation and security services through it.

On the other hand, Telxius is building BRUSA, which is a new subsea cable stretching, 6,800 miles, and connecting Rio de Janeiro and Fortaleza, Brazil, with San Juan, Puerto Rico, and Virginia Beach, VA (USA). The progress of the subsea cable, which will also offer eight fiber pairs, is on track, and is expected to be completed by mid-2018. Also, Telxius enjoys points of presence (PoPs) in more than 20 Equinix IBX data centers, globally, to aid the Telxius network.

With growth in cloud computing, Internet of Things and big data and an increasing number of companies opting for third-party IT infrastructure, data-center REITs like Equinix and Digital Realty (DLR - Free Report) are experiencing a boom market. Moreover, with the exponential rise in data, resulting from web browsing and e-commerce to streaming video and AI, there is a significant surge in new subsea cable construction. In fact, total subsea cable bandwidth is projected to double by 2021 and Equinix remains well poised to cater to this fast-increasing requirement for subsea cables by means of data-center design, partnerships, as well as buyouts.

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

However, the stock has depreciated 10% over the past three months, versus the 3.8% increase recorded by its industry.

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