Equinix Buys Infomart Dallas for $800M in Southwest Expansion
Equinix has acquired Infomart Dallas, a major interconnection hub and home to half of its eight International Business Exchange centers, for $800 million, the company announced today, just ahead of its fourth quarter earnings call.
The acquisition is the latest in a series of expansion moves by Equinix Inc. (Nasdaq: EQIX) and gives it a much bigger presence in what is a large interconnection and colocation market, critical to the southwestern part of the US. Unlike some other Equinix expansion efforts, this one is also a major real estate deal, giving it additional "owned assets" versus leased space. In a statement, Equinix said it will now earn 45% of its revenues from owned assets.
Infomart Dallas has 1.6 million gross-square-feet of space, with multiple fiber optic entry points. According to Equinix, it still has approximately 11 megawatts of power available for expansion and the ability to develop another 40 MW of power on adjacent land. Equinix is the largest of its 45 tenants, which include networks, colocation providers and office tenants as well.
The move positions Equinix for major expansion in the region as it continues to compete with other data center and interconnection providers such as Digital Realty Trust Inc. Equinix is being the facility from ASB Real Estate Investments, in a debt and cash deal.
Separately, Equinix announced 2017 revenues of $4.36 billion, up 21% over 2016, including $359 million in revenue from the 29 Verizon data centers it acquired and $17 million from a Turkish data center deal. Operating income was $809 million, up 31% over 2016. The company is projecting a $5 billion revenue stream for 2018.
— Carol Wilson, Editor-at-Large, Light Reading