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Equinix Set to Build New Data Center Facility in Singapore
EQIXEquinix(EQIX) ZACKS·2024-11-20 18:30

Equinix's New Data Center in Singapore - Equinix plans to establish a new data center in Singapore with an initial investment of 260million[1]−Thefacility,namedSG6,isexpectedtoopeninQ12027andwillbeEquinix′ssixthInternationalBusinessExchangedatacenterinSingapore[1]−SG6willfeatureadvancedliquidcoolingtechnologytosupportnext−generationworkloadslikeAI[1]CapacityandGlobalNetwork−Thefullybuiltfacilitywillofferacapacityof20megawatts[2]−SG6willbeintegratedintoEquinix′sglobalnetwork,whichincludes268interconnecteddatacentersacross34countries,with59intheAsia−Pacificregion[2]−Thefacilitywillprovideenhancedcapacity,worldwidereach,andseamlessintegrationwithinterconnectionandcolocationservices[2]SustainabilityandDigitalTransformation−SG6isdesignedtoincorporateenvironmentalandoperationalefficiencies,aligningwithSingapore′sGreenPlan2030forsustainabledevelopmentandcarbonemissionreduction[3]−Thefacilitywillhelpcustomersandthenationmeetdigitaltransformationgoalswhilesupportingsustainabilitycommitments[3]MarketDemandandEquinix′sPosition−Equinixexpectsrisingdemandfordatacentercapacityduetocompute−intensiveworkloadslikeAI[4]−Thecompanyiswell−equippedtosupportnext−generationworkloadswithitsnewAI−readydatacenter,integratingsustainabilityinnovations[4]−Equinix′sglobaldatacenterportfolioispositionedtobenefitfromstrongdemandforinterconnecteddatacenterinfrastructure,drivenbyenterprisesintegratingAIintotheirstrategies[4]StockPerformance−Equinix′sshareshavegained12.1260 million [1] - The facility, named SG6, is expected to open in Q1 2027 and will be Equinix's sixth International Business Exchange data center in Singapore [1] - SG6 will feature advanced liquid cooling technology to support next-generation workloads like AI [1] Capacity and Global Network - The fully built facility will offer a capacity of 20 megawatts [2] - SG6 will be integrated into Equinix's global network, which includes 268 interconnected data centers across 34 countries, with 59 in the Asia-Pacific region [2] - The facility will provide enhanced capacity, worldwide reach, and seamless integration with interconnection and colocation services [2] Sustainability and Digital Transformation - SG6 is designed to incorporate environmental and operational efficiencies, aligning with Singapore's Green Plan 2030 for sustainable development and carbon emission reduction [3] - The facility will help customers and the nation meet digital transformation goals while supporting sustainability commitments [3] Market Demand and Equinix's Position - Equinix expects rising demand for data center capacity due to compute-intensive workloads like AI [4] - The company is well-equipped to support next-generation workloads with its new AI-ready data center, integrating sustainability innovations [4] - Equinix's global data center portfolio is positioned to benefit from strong demand for interconnected data center infrastructure, driven by enterprises integrating AI into their strategies [4] Stock Performance - Equinix's shares have gained 12.1% over the past three months, outperforming the industry's growth of 2.8% [5] Broader REIT Sector - Welltower (WELL) and Cousins Properties (CUZ) are better-ranked stocks in the REIT sector, each carrying a Zacks Rank 2 (Buy) [6] - The Zacks Consensus Estimate for Welltower's 2024 FFO per share is 4.26, suggesting 17% year-over-year growth [7] - The Zacks Consensus Estimate for Cousins Properties' 2024 FFO per share is $2.68, indicating a 2.3% increase from the previous year [7]