Equinix buys Frankfurt data centre as demand from financial firms builds
23 July 2009 | 3453 views | 0
Equinix has acquired a data centre in Frankfurt and outlined plans to expand one of its New York sites on the back of strong demand from financial services firms.
The news comes as the Silicon Valley-based firm reports strong second quarter financial results. Revenue for Q2 was $213.2 million, 24% up on the same period the previous year. Net income was $17.4 million, or $0.44 a share, compared to $0.7 million, $0.02 a share, in 2008.
As major global trading hubs, New York and Frankfurt are both seeing demand for colocation space and network interconnection services outpace supply, says Equinix.
The firm has seen significant growth in both markets for Equinix Financial eXchange, a community of execution venues, buy and sell side firms, and technology utilities that have located at its data centres.
Chi-X Europe, Deutsche Boerse, Nyse Liffe and 7ticks have all joined Equinix Financial eXchange recently in Frankfurt, while the Boston Options Exchange, Chicago Board Options Exchange, The International Securities Exchange and Fixnetix have signed up in New York.
Equinix paid around $30 million for the 130,000 square foot Frankfurt data centre. The site, formerly operated by Exodus Communications, will have a total capacity of about 3300 cabinet equivalents.
The centre will be built out in phases, with the first expected to open in November, adding approximately 1700 cabinet equivalents. The company says it will invest up to $10 million in capital expenditures in the first phase.
In addition, the firm's site at Secaucus, New Jersey, is set for a $100 million expansion, adding 1250 sellable cabinets
Steve Smith, president and CEO, Equinix, says: "New York and Frankfurt continue to be strong markets for colocation and interconnection services, with significant growth from the enterprise, network and financial services industry. Financial market participants rely on Equinix's existing community of financial trading companies and electronic trading networks for low-latency order flow and trading."