Equinix Eyes African Growth With $390M Investment In Data Center Expansion: Report

Equinix, Inc. EQIX reportedly plans to invest $390 million in Africa over the next five years to create data centers and expand current operations in South Africa and the west of the continent.

The company is pursuing opportunities in East Africa and will potentially spend more to build or pursue acquisition, reported Bloomberg. 

The report quoted Sandile Dube, managing director for South Africa, who stated, “We will continue to invest where it makes sense on the continent, and we are undergoing a number of studies to ascertain these opportunities. The money planned for investment includes the construction of data centers at our current operations, but excludes plans for additional markets.”

He added, “We’re going to need key hubs on the continent as we have in Europe, which is why we have started with Lagos, Joburg and, in time, we would like to add Nairobi.”

This month, the California-based data center operator REIT reported fourth-quarter FY23 revenue of $2.110 billion, marginally missing the consensus of $2.114 billion.

Equinix reported an adjusted FFO per share of $7.30, higher than $7.09 a year ago.

In FY23, the company opened 14 new data centers in 12 metros, including Dublin, Frankfurt, Kuala Lumpur, Madrid, Milan, Montreal, Paris, São Paulo, and Tokyo, and added seven new projects in Dallas, Lagos, Madrid, Milan, Warsaw and Washington, D.C.

Also Read: The REIT Behind NVIDIA’s Stunning 400% Data Center Revenue Growth

For FY24, the company expects adjusted FFO per share of $34.58-$35.31 and revenue of $8.793 billion – $8.893 billion (vs. $8.86 billion estimate).

Price Action: EQIX shares are trading higher by 0.40% at $884.32 on the last check Friday.