Equinix Eyes African Growth With $390M Investment In Data Center Expansion: Report
Portfolio Pulse from Lekha Gupta
Equinix, Inc. (NASDAQ:EQIX) plans to invest $390 million in Africa for data center expansion over the next five years, targeting South Africa and the west of the continent, with potential further investments in East Africa. The investment aims at constructing new data centers and expanding current operations, excluding additional markets. Equinix reported a Q4 FY23 revenue of $2.110 billion, slightly below consensus, and an adjusted FFO per share of $7.30. The company opened 14 new data centers in FY23 and expects an adjusted FFO per share of $34.58-$35.31 for FY24.
February 23, 2024 | 5:33 pm
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Equinix plans a $390 million investment in Africa for data center expansion, aiming to enhance its operations in South Africa and potentially East Africa. The company reported a Q4 FY23 revenue of $2.110 billion, slightly missing expectations, but showed growth in adjusted FFO per share. Equinix anticipates an adjusted FFO per share of $34.58-$35.31 for FY24.
Equinix's significant investment in Africa indicates a strategic expansion move, likely to boost its market presence and future earnings. The slight miss in Q4 FY23 revenue is overshadowed by the positive adjusted FFO per share growth and optimistic FY24 forecasts. This strategic investment and positive financial outlook suggest a potential positive short-term impact on EQIX's stock price.
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