Equinix targets low-20% returns on $5B-$7B annual data center investments, betting on AI-driven demand and high-density infrastructure to fuel mid-term growth.
Equinix's plans to invest $5B-$7B annually in data centers with low-20% cash-on-cash returns and accelerating AI-driven demand support a positive outlook.
Equinix is ramping up its development pipeline with annual investments of $5 billion to $7 billion to meet accelerating AI-driven demand. The company targets low-20% cash-on-cash returns by focusing on established markets and high-density infrastructure, leveraging its massive 3-gigawatt power portfolio to support enterprise digital transformation.
Equinix controls approximately 3 gigawatts of designed power, with 600-700 megawatts currently under development and a target of 1 gigawatt in production by early next year.
No, executives stated that while AI adoption is accelerating among enterprise customers, it still represents a minority of the company's total revenue today.