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Equinix Expands ECX Fabric to Boost Global Interconnection

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Equinix, Inc. (EQIX - Free Report) recently announced expansion of connectivity options that have enabled the company to complete the most recent phase in the evolution of its global interconnection platform — Platform Equinix.

To cater the interconnection needs of customers and enhance Platform Equinix as a global suite for digital business, the company expanded its connectivity service delivered via Equinix Cloud Exchange Fabric (ECX Fabric). This will facilitate connections between all of its 37 ECX Fabric markets, spanning across five continents.

Further, customers will be able to use Platform Equinix to privately interconnect networks, clouds and services to global data centers. This apart, customers can also leverage on this global connectivity functionality to create a global mesh and integrate infrastructures in different regions.

In fact, users will be able to establish on-demand network connections between the Americas, Europe and Asia-Pacific. Moreover, this service can be used as a connection between Equinix International Business Exchange (IBX) data centers, as well as support existing networks. This will help customers easily gain access to potential new partners globally.

Notably, the capacity for private data exchange is projected to be around 10 times faster than public Internet traffic by 2021. Hence, the company’s focus to fortify its interconnection services and networks is a strategic fit.

Furthermore, the tailwinds for data-center real estate investment trusts (REITs) will likely remain in place amid growth in cloud computing, Internet of Things and big data, as well as increasing number of companies opting for third-party IT infrastructure. Also, the estimated growth rates for artificial intelligence, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five-eight years. These factors are anticipated to provide substantial growth impetus to data-center REITs, including Equinix, Digital Realty Trust, Inc. (DLR - Free Report) , CyrusOne Inc. and CoreSite Realty Corporation (COR - Free Report) .

Shares of this Zacks #3 (Hold) Ranked stock have rallied 18.6% over the past three months, outperforming the real estate market’s growth of 9.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Nonetheless, its significant debt burden remains a concern in a rising rate environment. In addition, aggressive pricing pressure is likely to prevail in the industry. Also, consolidation in the telecommunications industry might result in low demand for colocation space, hindering the company’s growth.

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