Company Reports

Equinix is the largest third-party data center operator in the world by revenue, with deep roots in interconnectivity and a focus on smaller retail tenants. With a larger number of customers per data center, Equinix can offer colocation services, connecting customers through its infrastructure and avoiding the open internet. While Equinix has begun investing in wholesale data center joint ventures with private equity firms, it is the smaller tenant sizes and higher tenant density of its retail data centers that provide a competitive advantage over established competitors and new entrants to the data center industry.

Equinix reported good results, posting 16% revenue and 20% adjusted funds from operations growth. The firm raised 2026 guidance and said it aims to achieve 10%-13% annual revenue growth through 2029, following its announcement of further data center expansion plans.

Equinix is the largest third-party data center operator in the world by revenue, with deep roots in interconnectivity and a focus on smaller retail tenants. With a larger number of customers per data center, Equinix can offer colocation services, connecting customers through its infrastructure and avoiding the open internet. While Equinix has begun investing in wholesale data center joint ventures with private equity firms, it is the smaller tenant sizes and higher tenant density of its retail data centers that provide a competitive advantage over established competitors and new entrants to the data center industry.

Equinix's results were solid, with revenue continuing to accelerate amid growing demand for artificial intelligence inference and agents. Despite a record 51% EBITDA margin and an increase in full-year guidance, shares were slightly down as results trailed the market's lofty expectations.

We are transferring coverage of Equinix and Digital Realty, the largest and second-largest third-party data center providers by revenue. The firms rent cloud-neutral data center capacity to hyperscalers and all sizes of enterprises, allowing tenants to connect to cloud providers and each other.

Equinix is the largest third-party data center operator in the world by revenue, with deep roots in interconnectivity and a focus on smaller retail tenants. With a larger number of customers per data center, Equinix can offer colocation services, connecting customers through its infrastructure and avoiding the open internet. While Equinix has begun investing in wholesale data center joint ventures with private equity firms, it is the smaller tenant sizes and higher tenant density of its retail data centers that provide a competitive advantage over established competitors and new entrants to the data center industry.

Equinix is the largest third-party data center provider worldwide. We expect the company to continue to benefit from major secular trends, such as rising data usage, a greater need for connected data applications and computing, an increasing shift to cloud computing, and the proliferation of artificial intelligence.

Equinix's fourth-quarter and full-year results were mildly disappointing, but a strong 2026 outlook sent shares up substantially in after-hours trading. Data center demand continues to look voracious, driving up pricing in a capacity and power-constrained environment.

Equinix reported solid third-quarter results, with sales up 5% and adjusted EBITDA up 10%. Demand has remained healthy amid the generational need for data centers. Annualized gross bookings rose 25% to $394 million.

Equinix is the largest third-party data center provider worldwide. We expect the company to continue to benefit from major secular trends, such as rising data usage, a greater need for connected data applications and computing, an increasing shift to cloud computing, and the proliferation of artificial intelligence.

Equinix is the largest third-party data center provider worldwide. We expect the company to continue to benefit from major secular trends, such as rising data usage, a greater need for connected data applications and computing, an increasing shift to cloud computing, and the proliferation of artificial intelligence.

Equinix is the largest third-party data center provider in the world. We expect the firm to continue to benefit from major secular trends, such as increasing data usage, a greater need for connected data applications and computing, an increasing push to cloud computing, and advancing artificial intelligence capabilities.

Equinix posted 5% revenue growth, led by interconnection growth of 8%. The 50% adjusted EBITDA margin was a record, as Equinix continues to drive recurring revenue per cabinet, which was up 3% sequentially. Management slightly raised full-year guidance for revenue, adjusted EBITDA, and AFFO.

Equinix is the largest third-party data center provider in the world. We expect the firm to continue to benefit from major secular trends, such as increasing data usage, a greater need for connected data applications and computing, an increasing push to cloud computing, and advancing artificial intelligence capabilities.

Equinix is the largest third-party data center provider in the world. We expect the firm to continue to benefit from major secular trends, such as increasing data usage, a greater need for connected data applications and computing, an increasing push to cloud computing, and advancing artificial intelligence capabilities.

Equinix highlighted success in the interconnection and connectivity business and growing AI-related demand, supporting its expectations for 7%-10% annual revenue growth and 5%-9% annual AFFO growth through 2029. However, a higher-than-expected capital spending forecast sent shares down 9%.

Equinix reported 7% year-over-year growth in revenue and 8% in EBITDA, adjusted for currency fluctuations, in first-quarter 2025. Tight supply and robust data center demand drove a 2% annual improvement in recurring revenue per cabinet. The total cabinet count grew 2% and interconnections grew 4%.

The data center and communications equipment stocks we cover traded down by midsingle digits while investors pushed tower stocks higher in response to the US tariff announcement April 2. We see little risk of material tariff-related headwinds for these businesses, and therefore we maintain our fair value estimates across our coverage.

Equinix is the largest third-party data center provider in the world. We expect the firm to continue to benefit from major secular trends, such as increasing data usage, a greater need for connected data applications and computing, an increasing push to cloud computing, and advancing artificial intelligence capabilities.

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.