Equinix, Inc. EQIX has unfurled its adventurous spirit with a grand plan to inject $390 million into Africa’s tech landscape over the next five years. The strategic move involves the establishment of data centers and the expansion of current operations in South Africa, as well as venturing into the west of the continent, as reported by Bloomberg.
Setting its sights further afield, Equinix is also exploring opportunities in East Africa and may bolster its financial commitment beyond the initial forecast to either construct new data centers or engage in potential acquisitions.
Sandile Dube, the managing director for South Africa, expressed the company’s dedication to seizing ripe prospects across the continent, affirming, “We will continue to invest judiciously in areas that offer promise within the region. As part of our thorough evaluation process, we are conducting numerous studies to identify these opportunities. The allocated funds will cover the construction of data centers within our current operations, with an exception for additional market ventures,” he shared.
Dube emphasized the importance of establishing pivotal hubs on the continent akin to those in Europe, underscoring the initial focus on Lagos, Johannesburg, with future ambitions to extend the reach to Nairobi.
In a recent development, the California-headquartered data center operator REIT disclosed its fourth-quarter FY23 revenue at $2.110 billion, slightly below the estimated $2.114 billion consensus.
Highlighting its financial resilience, Equinix revealed an improved adjusted FFO per share of $7.30, marking an enhancement over the previous year’s $7.09 figure.
Throughout FY23, the company inaugurated 14 new data centers across 12 metros worldwide, including key locations such as Dublin, Frankfurt, Kuala Lumpur, Madrid, Milan, Montreal, Paris, São Paulo, and Tokyo. Additionally, Equinix embarked on seven fresh initiatives in Dallas, Lagos, Madrid, Milan, Warsaw, and Washington, D.C.
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Looking ahead to FY24, Equinix anticipates achieving an adjusted FFO per share within the range of $34.58-$35.31, with revenue forecasted to reach $8.793 billion – $8.893 billion, slightly below the $8.86 billion estimate.
Price Action: EQIX shares have set sail on a favorable trajectory, ascending by 0.40% to $884.32 in the latest Friday trading update.
