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Equinix Set to Build New Data Center Facility in Singapore

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Equinix, Inc. (EQIX - Free Report) recently announced its plans to establish a new data center in Singapore, with an initial investment of $260 million. This facility, featuring advanced liquid cooling, is designed to help global businesses in next-generation workloads, such as artificial intelligence (AI).

The nine-story facility, referred to as SG6, is expected to open in the first quarter of 2027. It will also represent Equinix’s sixth International Business Exchange data center in Singapore.

When fully built, the facility is expected to offer a capacity of 20 megawatts. SG6 will be incorporated into Equinix's global network, which includes 268 interconnected data centers, 59 of which are in the Asia-Pacific region, covering 73 metropolitan areas across 34 countries. This facility will provide customers with enhanced capacity, worldwide reach and seamless integration with interconnection and colocation services.

SG6 is designed to incorporate both environmental and operational efficiencies, thereby assisting customers and the nation to meet their digital transformation goals while also supporting sustainability commitments. This includes initiatives linked to the Green Plan 2030, which as a thorough national strategy in Singapore aimed at fostering sustainable development, reducing carbon emissions and bolstering environmental resilience by 2030.

Per Yee May Leong, MD at Singapore, Equinix. "We expect that with the large demand for compute-intensive workloads, like AI, the demand for data center capacity will continue to rise, and Equinix is well-equipped to support these next-generation workloads. By integrating the latest sustainability innovations, our new AI-ready data center can enable businesses to leverage next-generation workloads responsibly and more sustainably."

Wrapping-Up

Going forward, Equinix’s global data center portfolio is well-poised to benefit from the solid demand for interconnected data center infrastructure. Enterprises and service providers’ continued efforts to integrate AI into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the near term.

Shares of this Zacks Rank #3 (Hold) company have gained 12.1% over the past three months, outperforming the industry’s growth of 2.8%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower (WELL - Free Report) and Cousins Properties (CUZ - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2024 FFO per share is pinned at $4.26, suggesting year-over-year growth of 17%.

The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share stands at $2.68, indicating an increase of 2.3% from the year-ago reported figure.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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