Monday, October 23, 2017

World’s largest data centre operators profit on Q2 $1.6bn revenues

Acquisitions, mergers and strong market uptake drive the business for some of the world’s biggest players.

The world’s largest data centre services providers Equinix and Digital Realty have reported combined revenues of more than $1.63bn in Q2 2017.

Equinix represents the largest part of the sum at $1,066m, with revenues jumping 12% from Q1 this year and 18% when compared to the same quarter in 2016.

The company has had an operating income of $185m, representing an increase of 11% over the previous quarter. Net income from continuing operations toped $46m.

Steve Smith, President and CEO, Equinix, said: “Q2 was another strong quarter for Equinix, surpassing the milestone of $1bn in quarterly revenues for the first time in the company’s history.

“A key highlight in the quarter was the completion of the acquisition of [29 facilities from the] Verizon’s Americas data centre portfolio, strengthening our global market leadership and providing additional capacity to meet customer demand.

“As the shift to digital impacts businesses across all segments, private, secure and distributed interconnection continues to grow as a core design principle of IT, resulting in key new customer wins, and healthy and growing market share for Equinix.”

As for Digital Realty, the provider has reported Q2 2017 revenues of $566m, a 3% increase from the previous quarter and a 10% increase from the same quarter last year. The company delivered a net income of $80m.

Digital Realty’s Chief Executive Officer A. William Stein, said: “During the second quarter of 2017, we signed total bookings representing $34 million of annualized GAAP rental revenue, including an $8 million contribution from interconnection.

“We further strengthened the balance sheet through opportunistic financings, and we reached an agreement to merge with DuPont Fabros, setting the stage for continued future value creation.”