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Equinix and Interxion set out 2016 global datacentre expansion plans

Colocation rivals outline their investment intentions and priorities for the year ahead

Equinix and Interxion have separately revealed details of their 2016 expansion plans, with both firms looking to add capacity to their portfolios.

Colocation provider Equinix has vowed to invest more than $4.5bn in building out its global datacentre portfolio through acquisitions and new builds.

The organisation plans to open four new sites in Tokyo, Dallas, São Paulo and Sydney, which it says will provide more than 4,000 cabinets of additional capacity and create nearly 200,000ft2 of new datacentre space.

The company says the money set aside for acquisitions includes the $3.8bn it spent on buying rival colocation provider Telecity, a deal that closed in January 2016.

For the deal to go through, the European Commission insisted that both firms divest a number of their European facilities in London, Amsterdam and Frankfurt, on anti-trust grounds.

Steve Smith, president and CEO of Equinix, said the investment was part of the company’s push to meet enterprise demand for interconnection opportunities within its datacentres.

“Global businesses are increasingly realising that interconnection is essential to deliver a rich, ubiquitous user experience, with the agility and actionable insight to enable new business models and enhanced productivity,” said Smith.

“This will be even more apparent as businesses locate their data closer to the edge to support the internet of things. Our focus on continually expanding our global interconnection platform means that wherever you grow, we will be there.”

Meanwhile, fellow datacentre operator Interxion has set out plans to grow the footprint of its datacentre portfolio by expanding existing facilities in four European cities – Marseille, Paris, Vienna and Dusseldorf.

The building work is expected to add 3,900m2 of space and 5MW of compute capacity to Interxion’s portfolio.

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“These four expansions represent a diversity of demand with strength in cloud, connectivity, financial services and digital media,” said Interxion CEO David Ruberg.

“We continue to deploy capital based on demand while strategically building our ‘communities of interest’ across our footprint.”

Unlike Equinix, Interxion does not mention whether it is planning any merger and acquisition (M&A) activity this year.

The company, which narrowly missed out on acquiring Telecity, has been the subject of much M&A speculation in recent months, with some reports suggesting it could be on the cusp of being acquired itself.

Steve Wallage, managing director of datacentre market-focused analyst firm Broadgroup Consulting, recently published a blog post setting out reasons why Interxion could be acquired by Digital Realty.

“It has challenges for Digital Realty, not least the timing, with much work still to do around Telx [which it acquired in July 2015],” wrote Wallage.

“However, Digital has been too timid before when faced with potential opportunities. If another buyer appears for Interxion, it is something it will long regret.”

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