Equinix Proposes 16th Data Center for Australia in Week of Headlines

data center stock pic
Feb 1, 2018
by Josh Anderson

SYDNEY, AUSTRALIA — Equinix’s consultancy and architecture partners have jointly submitted a proposal to the City of Sydney to build a $73 Million USD (AU $91m), 25,780 square foot data center at 506-518 Gardeners Road in Sydney’s inner-city suburb of Alexandria.

The proposed location is just a few miles south of the city’s central business district. This would be the 16th Equinix data center in Australia and the 5th in the Sydney metropolitan area — though five of the Australian properties were originally owned by Metronode, a local colocation services provider whom Equinix acquired in 2017 for $1 Billion USD (AU $792m).

The new data center will be linked via private fiber loop to the other four Sydney data centers, enabling better connectivity. According to Australian outlet The Urban Developer,  the facility is set to include “two floors of high-tech industrial storage in the form of colocation halls for ICT equipment, four floors of flexible and permanent office space for customers, clients and employees and multi-purpose high security meeting spaces.” Equinix’s consultancy partner is Aurecon, an engineering and infrastructure advisory company, while their architecture partner is architecture firm Warren and Mahoney.

This has been a buzzy week for Equinix. Chief Executive Officer Steve Smith resigned from his role as CEO on Tuesday, as well as from the board of directors, following Smith’s “poor judgment with respect to an employee matter.” Peter Van Camp has been named as Interim CEO of the company.

Despite this setback, markets seem to like Equinix’s moves — shares of Equinix Inc exceeded their 200 day moving average of $446.65, reaching as high as $458.64 per share. As of writing, Equinix shares have rose 3.5% on the day. In other news, SG Americas Securities LLC has disclosed that it increased its stake in Equinix, Inc. by 904.9% in the 4th quarter of 2017. SG Americas now owns 55,902 shares of Equinix’s stock, which translates to 0.07% of Equinix’s worth.

And investors aren’t alone in following Equinix’s lead — immediately after submission of Equinix’s proposal, Indian tech giant Freshworks, who operates data centers in Virginia, Dublin, and Frankfurt, nominated Sydney as the chosen destination for their fourth data center — the first such Freshworks facility in the Asia-Pacific region.

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