American Tower Corporation (AMT) shares are trading lower today, despite positive news from its subsidiary, CoreSite. CoreSite announced the launch of native 400 Gbps (400G) Dedicated Connections for Amazon Web Services (AWS) Direct Connect at four select locations in the United States. These locations include CoreSite’s data center campuses in Silicon Valley and Northern Virginia.
The expansion in Silicon Valley is particularly noteworthy. CoreSite’s campus will soon be expanded with the addition of the 240,000-square-foot SV9 data center, expected to be completed in the fourth quarter of 2024. This addition will bring the total square footage of the campus to 1.179 million square feet, making it a significant hub for data center operations. SV9, certified under the NVIDIA DGX-Ready Data Center program, is strategically positioned to become an ideal site for deploying AI-powered 400G solutions.
The availability of 400G Dedicated Connections is strategically advantageous, particularly for applications requiring large-scale dataset transfers, such as large language model training and real-time applications like advanced driver assistance systems. The proximity of these sites to AWS availability zones ensures exceptional network performance and low latency for customers, making them suitable for deploying demanding hybrid applications.
Juan Font, President and CEO of CoreSite and SVP of American Tower, emphasized the significance of the new 400G Direct Connect from AWS. He stated, “The new 400G Direct Connect from AWS is particularly beneficial to customer applications that transfer large-scale datasets for large language model training and real-time applications like advanced driver assistance systems.”
This expansion aligns with American Tower’s overall growth strategy, as it capitalizes on the increasing demand for data center infrastructure. In July, the company reported a 4.6% increase in second-quarter revenue to $2.90 billion, exceeding estimates. Additionally, AFFO per share increased 9.8% to $2.79, surpassing consensus expectations. American Tower is scheduled to announce its third quarter 2024 results on Tuesday, October 29, 2024.
Investors seeking exposure to the stock can consider investing in the Pacer Data & Infrastructure Real Estate ETF (SRVR) and Global X Data Center & Digital Infrastructure ETF (DTCR).
As of Thursday, AMT shares are down 0.74% at $230.17. This expansion underscores American Tower’s commitment to providing robust infrastructure solutions to meet the evolving needs of the digital economy.
