Data storage is something everyone needs.
Equinix is a real estate investment trust that specialises in investing in real estate that they use for data storage. It is the largest of its kind in the world. They have over 210 facilities across 5 continents and 25 countries. They have over 9700 companies on their book.
So why invest in data centres? Everyone needs data storage. Without it companies can’t operate. From cloud computing to online shopping, every business needs some form of storage and Equinix can boast some of the biggest names in tech as it’s customers including AWS, NetApp, Google Cloud, AT&T, Microsoft etc etc In the last ten years they have increased the value of their real estate holdings by over 400% and they aren’t slowing down with a number of ongoing projects across the world. I like the fact that they are diversified across the globe and not locked in purely to the US. They have a wide moat as the barrier to entry is so high. The growth potential is there with the never ending need for more data, especially in developing countries which is a massive market. They pay a 1.3% dividend which isn’t much but better than nothing. The current price is 13% below the high in October and I feel it’s a good entry point for a long term hold. Equinix is 96% institutional owned which should protect it from the volatility of large retail investment. The average analyst target is $883 with a high of $900 and a low $712. Although I don’t necessarily follow analyst guidance it’s good to see some high targets mentioned. Let me know what you think of Equinix in the comments below. You can invest in Equinix from as little as $50 with eToro