The major publicly-listed colocation firms have posted their Q1 2022 earnings results.
Both Equinix and Digital Realty posted stable, single-digit-percent revenue growth for the quarter.
Equinix closed its Entel acquisition, and approved new data center builds in Washington DC and Mumbai, India.
Digital Realty acquired a 2.6-acre plot of land in Zurich, Switzerland, that will support up to 14MW. It also leased 24-acres in Paris, France, that is expected to support the development of approximately 144MW of capacity.
Iron Mountain more than doubled its total 2022 leasing expectations after a strong Q1.
CyrusOne’s acquisition by KKR/GIP has closed this quarter, taking the company private.
Switch Inc – which is reportedly mulling a potential sale – and Cyxtera are due to report results later this month.
Equinix reported quarterly revenues of $1.7 billion, up two percent on the previous quarter and nine percent year-on-year.
Operating income was $267 million, Net Income was $147 million, while adjusted EBITDA was $800 million. Capital expenditures were approximately $413 million for the quarter.
Charles Meyers, president and CEO of Equinix, said: “We had a great start to 2022. While there are a number of macroeconomic factors we continue to proactively manage, the business continues to perform exceptionally well. Underlying demand for digital infrastructure continues to rise as enterprises in diverse sectors across the globe prioritize digital transformation and service providers continue to innovate, distribute and scale their infrastructure globally in response to that demand.”
In terms of expansions, during the quarter the company approved new facilities or expansions across the US and APAC.
Newly-approved expansions include; AT1 phases 6 & 7 in Atlanta totaling 575 cabinets (at a cost of $43 million), DC16 phase 1 in Washington DC totaling 3,200 cabinets ($198m, due online Q3 2023), SY6 phase 2 in Sydney totaling 500 cabinets ($43m), TY11 phase 4 in Tokyo for 675 cabinets ($55m), and MB3 phase 1 in Mumbai for 1,375 cabinets ($86m, due online Q4 2024).
In the earnings call, CFO Keith Taylor noted the company had purchased land for development in Mexico City.
Notably, the company appeared not to lease any further capacity at its xScale hyperscale facilities – remaining on 133MW of leased capacity from Q4 2021.
“We’re focused on a relatively small number of global hyperscalers that we think are critical to how the overall cloud macro plays out and are focused on them,” CEO Mayer said in the earnings call.
This week also saw Equinix officially close its acquisition of four data centers from Entel, taking over four data centers in Chile.
Digital Realty: Buys land in Zurich and Paris
Digital Realty reported revenues for the first quarter of 2022 of $1.1 billion, a 1 percent increase from the previous quarter and a three percent increase from the same quarter last year.
Net income was $76.9 million, Adjusted EBITDA was $603 million, a 3 percent increase from the previous quarter but a two percent decrease over the same quarter last year.
Digital Realty acquired a 2.6-acre land parcel in Zurich, Switzerland for approximately $21 million; the site is expected to support the development of approximately 14MW of IT load.
The company also signed a long-term lease with a purchase option on a 24-acre land parcel in Paris, France. The total expected investment to rent and acquire the land in the Canton de la Courneuve is approximately $132 million, and is expected to support the development of approximately 144MW of IT load.
It also noted that the 10-acres bought in Chennai, India, alongside Brookfield earlier this year is expected to support the development of approximately 100MW.
Shortly after quarter-end, Digital Realty acquired eight acres of land in Dublin, Ireland for $7 million; 2.4-acres of land in Barcelona, Spain for $12 million; and 34 acres of land in Frankfurt, Germany, for $64 million. It didn’t disclose capacity potential.
“Digital Realty delivered record bookings in the first quarter, driven by strong demand for data center solutions which is leading to a healthier overall fundamental dynamic and pricing environment,” said Digital Realty CEO A. William Stein. “We are proactively managing risks to guard against inflation and rising interest rates. Given the resiliency of our business, we believe we are well-positioned to continue to deliver sustainable growth for customers, shareholders, and employees.”
The company signed new bookings expected to generate $167 million of annualized GAAP rental revenue, and renewal leases representing $177 million of annualized GAAP rental revenue. The majority of leasing came out of the US in 1MW+ deals; the company signed 77.3MW in 85.2MW in the US totaling 734,000 sq ft. APAC and Europe saw a combined 25.1MW and 169,000 sq ft.
Read more: datacenterdynamics.com