Interxion Reveals European Expansion Plans In Earnings

Interxion detailed several expansion projects during its earnings. Expansions in Copenhagen and Stockholm were completed, while new expansion projects in Stockholm, Vienna, and Zurich were announced today.

In Stockholm, Interxion (INXN) is constructing the second phase of STO 2 (STO 2.2) in response to continued demand. STO 2 is being completed in two phases – the first phase being the announced expansion completion – each providing 500 square meters of equipped space. Phase 1 has 2MW of power and is available now, while the latest expansion is scheduled to be operation in the first quarter of 2014.

The company has seen strong demand in Stockholm, previously expanding thrice in the last two years. Now it has further expansion underway.

In Vienna, Interxion has constructed the fourth phase of VIE 1 (VIE 1.4). This market is being driven by demand from financial services and cloud communities of interest. VIE 1.4 became operational in the third quarter of 2013 and provides approximately 400 square meters of Equipped Space;

In Zurich, Interxion is on the fourth phase of ZUR 1 (ZUR 1.4), once again in response to continued demand. ZUR 1.4 will provide approximately 500 square meters of Equipped Space and is scheduled to become operational in the fourth quarter of 2013.

The capital expenditure associated with these projects is approximately €11 million (approx $14.6 million with current conversion rates). This is included in the company’s 2013 capex guidance.

The completed expansions to Stockholm and Copenhagen were announced last February. These two expansions combined were estimated to cost €17 million ($22.7 million). The Copenhagen expansion provides 300 square meters of equipped space while the Stockholm expansion added 500 square meters, for an increase of total increased space of 800 meters in the quarter.  The company now has a total of 78,900 square meters.

Revenue generating space in the quarter increased by 1,200 square meters, to 58,200 square meters. The company’s utilization rate is now 74%

"Interxion’s second quarter results reflect solid execution against our market segmentation strategy, which has delivered sustained, profitable growth despite the effects of a continued unfavourable macroeconomic environment," said David Ruberg, Chief Executive Officer of Interxion. "Growth in our communities of interest and structural drivers, such as the onset of migration to cloud computing, are underpinning continued demand for Interxion’s highly connected data centres."