When looking at specific sectors of the economy, finding the best options out of what may seem to be a sea of options can certainly be challenging. I’ve liked the data storage space for quite some time, and do believe the world is shifting, from a technological perspective, under our feet.
We are all using absurd amounts of data today, when compared to historical usage, and expectations are that data usage will continue along its parabolic trajectory for some time to come. In this article, I’m going to highlight one of the data center companies I think provides excellent value today.
Interaxion Holdings (NYSE:INXN) is a pure-play European data center company, and is one of two large players in Europe (the other being Equinix which I also like). This company was going to be acquired by Digital Realty in the U.S., due to the significant and valuable assets of Interaxion, but talks fell through. At this price point, investors are getting decent value, as Interaxion is priced where it should be, in line with its peers (i.e. without an acquisition premium).
I expect to see tons of growth from companies like Interaxion over the long run, and would encourage casual investors who have not yet explored this sector to do so. I think we’re on the cusp of a technological renaissance, and data storage will be the infrastructure used to fuel the rise of new cloud technologies and continued innovation for years to come.
Invest wisely, my friends.
