At a recent press release, Equinix Inc. (EQIX) unveiled its plan to set up a 4,500 square meter or 48,400 square foot data center in Geneva , Switzerland . The company is in the process of expanding its global data center network to meet the global demand for data center services. This second data center in Geneva falls within the company’s $1.4 billion expansion plan to be executed within 2007 – 2010 in which the company expects to expand its operation in 15 out of 18 markets.
This new GV2 data center will be completed in phases. The first phase is scheduled to open in December 2009, increasing the company’s cabinet capacity by 380. The data center will have a total capacity of 780 cabinets after completion. This GV2 data center will run on the services of the company’s existing data center (GV1) which supports functions of internet service providers and telecom companies providing services to banking and non-banking companies.
As a leading provider of data center services, Equinix is well-positioned in a market that has become much less competitive over the past few years, creating a more favorable pricing environment. The company is continuously acquiring new clients, and expanding its current facilities. The company continues to exhibit fiscal discipline as well.
Equinix is committed to increasing its operations in Europe . Geneva being a good market, offers reasonable business opportunity for the company. We are positive about the company’s recurring revenue model and its expansion into the European market, which has very favorable characteristics. However, we believe that it would require significant capital expenses to build out its data centers, which may put some pressure on the financial resources of the company.
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