Increased Demand Drives New Expansion Projects Capital Expenditure Guidance Increased
AMSTERDAM 26 September 2016 - INTERXION HOLDING NV (NYSE: INXN), a leading European provider of cloud and carrier-neutral colocation data centre services, today 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.
This communication contains forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking statements. Factors that could cause actual results and future events to differ materially from Interxion’s expectations include, but are not limited to, the difficulty of reducing operating expenses in the short term, the inability to utilise the capacity of newly planned data centres and data centre expansions, significant competition, the cost and supply of electrical power, data centre industry over-capacity, performance under service level agreements, certain other risks detailed herein and other risks described from time to time in Interxion’s filings with the United States Securities and Exchange Commission.
Interxion does not assume any obligation to update the forward-looking information contained in this report.
This announcement contains inside information under Regulation (EU) 596/2014 (16 April 2014).