Economic Moat – Mapletree Industrial Trust’s New Equinix Data Centre

Economic Moat – Mapletree Industrial Trust’s New Equinix Data Centre

MIT just announce a deal to build to suit a data center for us listed Equinix . This to me is a splendid deal for MIT. Factsheet here It also shows us how much lock in certain data center has. Equinix Economic Moat Equinix Data center are rather different from perhaps the local data center in that the folks that make use of their infrastructure are Google and Facebook, the big boys in the infrastructure consumption space. For the telecom operators to connect to them they have to try to minimize the latency. Equinix have a proprietary switching channel that allows very fast switching between Equinix neighbours. The cost of moving away is that you gave to incur migration and these residual business losses due to not competitive services.

Full article: http://thefinance.sg/2013/03/31/economic-moat-mapletree-i...