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Equinix Unveils New Data Center in Dallas Infomart Campus

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Equinix, Inc. (EQIX - Free Report) added a new International Business Exchange (“IBX”) data center in the Dallas Infomart Data Center campus.

The $142-million data center is the 9th one for the company in the Dallas metro area and the 2nd building on the growing Dallas Infomart campus. Moreover, with this new data center addition, it expanded the footprint in the Americas — operating more than 90 IBX data centers across Brazil, Canada, Colombia, Mexico and the United States.

The initial phase of DA11 offers a capacity of 1,975 cabinets and a colocation space of around 72,000 square feet. Upon the completion of the future phases, the facility is anticipated to provide a capacity of more than 3,850 cabinets and colocation space, exceeding 144,000 square feet.

The company also launched its 5G and Edge Proof of Concept Center (POCC) at the state-of-the-art data center. Notably, Dallas serves as a core communications market for the Southern United States, with a concentration of telecommunications companies, many of which are part of Equinix’s dense and diverse ecosystem of carriers, clouds, and enterprises. Hence, launching POCC and 5G at the new data center is a strategic fit, since companies are on the lookout to test new 5G and edge innovations.

In fact, Equinix 5G and Edge POCC will accelerate 5G strategies of companies by offering a 5G and edge "sandbox" scenario. This will facilitate mobile network operators, technology vendors, cloud platforms and enterprises to directly connect with Platform Equinix to demonstrate complex 5G and edge deployment structures.

Being an important multi-tenant data center market in the United States, management expects Dallas to continue witnessing significant demand. Hence, with the opening of DA11, the company is positioned to leverage on the demand for connectivity and interconnection to its rich ecosystem of carriers, network and cloud providers.

Further, the new data center will help companies to accelerate their transformation from traditional to digital businesses by speedily scaling infrastructures, easily adopting hybrid multicloud architectures and interconnecting with potential business partners from the global ecosystem provided by Platform Equinix.

Although the expansion of the data-center portfolio is a strategic fit, it requires huge capital outlays and given the company’s significant debt obligations, these capital-intensive activities are concerning.

Moreover, shares of this Zacks Rank #3 (Hold) company have jumped 40.6% over the past year against the real estate market’s decline of 10.8%.

 


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