Equinix Inc. (EQIX) has opened its first International Business Exchange (IBX) data center — OS1 — in Osaka, Japan. The company is aggressively moving ahead with its plan of developing data centers across different geographical locations.
The data center has been developed in collaboration with K-Opticom and Kanden Energy Solutions (KENES), the technology access providers in the Osaka/Kansai area. The first phase of OS1 will offer 320 cabinets, which is expected to increase to over 800 in 2014. Moreover, the new data center enables customers to access more than 950 domestic and international carriers.
The company also expects that this data center will strengthen the global network connectivity in the Osaka region and maintain a direct connection with the network core in Dojima. Equinix already has four operational data centers in the country in order to tap into the increasing demand for data centers in the Asia-Pacific and Japan (APJ) region.
The data center business is thriving across geographies and Equinix is uniquely positioned to capitalize on this opportunity. Being a major player in the data center space, the company is making an effort to grab a major share of this increased demand by renewing its focus on the APJ region. The solid prospects in the region may be expected to drive its growth.
Earlier, Equinix opened its second IBX in Rio de Janeiro based on the platform provided by ALOG Data Centers of Brazil S.A. This data center, popularly known as RJ2, will provide better security and mitigate risk, thereby strengthening the company’s overall market position.
Expansion in important markets and consolidation of facilities in existing ones have been part of Equinix’s core strategy. Nonetheless, increasing competition from the likes of AT&T Inc. (T), Equinix’s European exposure and industry consolidation remain headwinds.
Equinix carries a Zacks Rank #3 (Hold). Investors can instead consider stocks like SanDisk Corp. (SNDK), carrying a Zacks Rank #1 (Strong Buy) and Microchip Technology Inc. (MCHP) with a Zacks Rank #2 (Buy).
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