Equinix (EQIX) Expands in India, Acquires 2 Data Centers
Equinix (EQIX) expands into the digitally growing India market with the acquisition of two data centers in Mumbai.
Boosting its presence in the India market, Equinix, Inc. EQIX completed the acquisition of India operations of GPX Global Systems, Inc. for an all-cash transaction of $161 million. With the move, the company expanded its portfolio with a fiber-connected campus in Mumbai with two data centers. It has appointed Manoj Paul as the managing director for Equinix India operation.
With the completion of the transaction, the new International Business Exchange (“IBX”) data centers form a network-dense data center campus, with more than 350 international brands and local companies.
The two acquired data centers, referred to as Equinix MB1 and MB2, offer an initial capacity of 1,350 cabinets, with an additional 500 cabinets to buildout. At the full build, the facilities will add more than 90,000 square feet of colocation space to Platform Equinix.
The acquisition seems a strategic fit as India is expected to grow, witnessing a 21% compound annual growth rate, and become a$2-trillion digital economy by 2030. With the rollout of 5G, and information and communications technology policy reforms of the government, digitalization and cloud adoption in India is expected to rise.
Equinix’s effort to bolster its presence in the country will add scale and strengthen its position in the region, while helping it benefit from the accelerations in digital infrastructure transformations.
Upon the completion of the business integration, the company plans to offer its full spectrum of interconnection and digital infrastructure services, comprising Equinix Connect, Equinix Internet Exchange, Metro Connect, Equinix Fabric and Network Edge in the new data centers, and help them connect in real-time, directly and privately to more than 10,000 companies.
Equinix enjoys a solid presence in the AsiaPacific region, operating 49 IBX data centers across 13 metros in Australia, China, Hong Kong, India, Japan, Korea and Singapore. Globally, the company remains well-poised to bank on the robust demand in the data center space with its Platform Equinix, which comprises more than 230 data centers across 65 metros and 27 countries.
Robust growth in cloud computing, the Internet of Things and big data, and a greater call for third-party IT infrastructure are spurring the demand for data-center infrastructure. Moreover, growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets is anticipated to be robust over the next five to six years.
As infrastructure providers for the rapidly-growing digital economy, data-center providers such as Equinix, Digital Realty Trust DLR, CyrusOne Inc. CONE and CoreSite Realty Corporation COR are well-placed for sustainable growth.
Shares of Equinix have gained 44.9% over the past six months, outperforming the industry's growth of 22.8%.
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The company currently 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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