Equinix Earnings: US Dollar Weighs but Data Center Demand Remains Hot; Fair Value to $860 From $810

Equinix again posted growth across every major metric during the fourth quarter as enterprises rushed to secure new data center space in an era of power constraints and artificial intelligence-related demand. We’ve slightly lowered our near-term revenue forecast to account for continued power constraints that are hindering new cabinet growth. However, we expect these constraints to be delays rather than cancelations and they do not affect our fair value estimate, which we raise to $860 from $810 to account for the time value of money.