Interxion (INXN) Announces European Data Center Expansion

September 26, 2016 7:18 AM EDT

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Interxion Holding (NYSE: INXN) announced it will expand in three cities in response to customer demand. Interxion will construct its eleventh data centre in Frankfurt (“FRA11”) and will expand data centres in Paris and Marseille to satisfy customer orders. As a result of these expansions, Interxion is today also announcing an increase in its 2016 annual capital expenditure guidance to €260 million - €280 million.

“Improving market dynamics in Europe are driving demand for colocation services across multiple segments and multiple countries, and Interxion continues to invest in new projects to expand our footprint in the cities where our customer orders exceed our existing capacity,” said David Ruberg, Interxion’s Chief Executive Officer.

“Frankfurt is the heart of the digital economy in continental Europe, and Interxion has attracted a wide array of customers, including deployments from all of the leading cloud platforms who have chosen our connectivity rich campus to gain access to more than 200 carriers and ISPs. Additionally, the cloud infrastructure rollout is now starting to reach Paris, as cloud providers seek to extend their infrastructure into this major market. Marseille is developing into a key connectivity hub for Europe, with two new submarine cables landing in our facilities. This is attracting a widening range of international customers, from carriers to content providers to cloud platform providers.

“As a result, we are increasing our capital expenditure guidance to support order-driven expansions in these important markets in Europe,” states Ruberg.

In Frankfurt, the final two phases of FRA10 are on schedule to open in 4Q 2016 and over 80% of the FRA10 capacity is sold. To address the continued high pipeline demand, Interxion will build FRA11, providing 4,800 square metres (“sqm”) of equipped space and 10 MW of customer-available power when fully built out. It will be constructed in four phases and each phase will provide 1,200 sqm of equipped space. The first two phases (FRA11.1 and FRA11.2) are scheduled to open in 4Q 2017. The final two phases (FRA11.3 and FRA11.4) are scheduled to open in 2Q 2018. The capital expenditure associated with FRA11 is expected to be approximately €95 million.

In Paris, in March 2016, Interxion announced that it would construct the first phase of PAR7.2 which consists of 1,100 sqm of equipped space. In addition, Interxion will now further expand by another 1,000 sqm. Upon the completion of these two phases, PAR7.2 will deliver approximately 3 MW of customer power and 2,100 sqm of new capacity; 100% of this new capacity is pre-sold. The first 500 sqm of the new capacity is scheduled to open in 4Q 2016, with the remaining 1,600 sqm opening in 2Q 2017. The capital expenditure associated with the incremental Paris expansions announced today is expected to be approximately €23 million.

In Marseille, the second phase of MRS1 (“MRS1.2”) was opened in July 2016. MRS1.2 consists of 800 sqm of equipped space and 2 MW of customer power and is 100% sold. Interxion will build the next phase of this data centre (“MRS1.3”) which will provide an incremental 1,400 sqm of equipped space and 2 MW of customer power. MRS1.3 is approximately 50% pre-sold and is scheduled to open in 2Q 2017. The capital expenditure associated with MRS1.3 is expected to be approximately €20 million.

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