Google News Boosts Data Center Stocks
The announcement of huge data center projects by Microsoft and Google helped boost the share prices of other data center service providers in Friday’s market action. Shares of Internap (INAP) gained 8.8 percent, adding $1.46 to close at $18.06. Equinix (EQIX) surged $3.47 to 83.01, a gain of 4.3 percent, and Akamai (AKAM) rose 2.4 percent as it improved by $1.26 to $54.10.
On Thursday Microsoft confirmed plans for a $550 million data center project in San Antonio, while Google announced a $600 million facility in Lenoir, North Carolina. Shares of Equinix were also helped by a bullish forecast from RBC Capital Markets analyst Jonathan Atkin, who initiated coverage with an “Outperform” rating on the stock, saying could benefit from a favorable pricing environment coupled with increased demand for its services.