Equinix (EQIX): The World’s Leading Data Center Operator Keeps Growing
Equinix is a leading global operator of digital infrastructure and data centers structured as a REIT, specializing in colocation services, direct network interconnection, and traditional data center solutions. The company manages more than 270 data centers in key metropolitan areas worldwide.
The Equinix Platform serves as a neutral hub for enterprises and hyperscalers (Amazon Web Services, Meta, and others), as well as a power source for AI, enabling high-speed data exchange and supporting hybrid cloud solutions.
A key competitive advantage of EQIX is its unique ecosystem and exposure to the dynamic growth of the cloud and AI segments, along with a stable rental payment model that helps mitigate market volatility compared with companies focused on creating AI products.
In Q2 2025, the company reported strong results:
Portfolio utilization remains high: 81% in the Americas, 77% in EMEA, while APAC demonstrated +5.0% YoY MRR growth per cabinet. Annualized new bookings reached $345 million (+14.2% YoY), confirming resilient demand.
Management raised its 2025 guidance:
These improvements are supported by operational efficiency and foreign exchange tailwinds.
EQIX shares trade at 18.9x NTM P/FFO, implying a ~15% discount to its historical average and ~14% discount to the sector average. The stock is currently under pressure as the market is divided between those skeptical of its elevated investment pipeline amid high interest rates and those confident in the sector’s growth potential.
We believe the negative sentiment is temporary. Our team expects the Fed to cut rates next year, which would likely allow the company to bring its AFFO profitability forecast back to neutral territory. Fundamentally, the company benefits from the combination of critical infrastructure, business scale, and structural growth in the data center segment. In North America, vacancy rates are at a record low of 2.3%, with projected development volume reaching $1 trillion by 2030.
We reiterate our “Buy” recommendation with a target price of $940.
Price at the time of analysis: $772.6 → Upside potential: 21.7%.
Equinix is a leading global operator of digital infrastructure and data centers structured as a REIT, specializing in colocation services, direct network interconnection, and traditional data center solutions. The company manages more than 270 data centers in key metropolitan areas worldwide.
The Equinix Platform serves as a neutral hub for enterprises and hyperscalers (Amazon Web Services, Meta, and others), as well as a power source for AI, enabling high-speed data exchange and supporting hybrid cloud solutions.
A key competitive advantage of EQIX is its unique ecosystem and exposure to the dynamic growth of the cloud and AI segments, along with a stable rental payment model that helps mitigate market volatility compared with companies focused on creating AI products.
In Q2 2025, the company reported strong results:
- Revenue: $2.26 billion (+4.5% YoY)
- Adjusted EBITDA: $1.13 billion (+9.0% YoY)
- AFFO per share: $9.91 (+7.6% YoY)
Portfolio utilization remains high: 81% in the Americas, 77% in EMEA, while APAC demonstrated +5.0% YoY MRR growth per cabinet. Annualized new bookings reached $345 million (+14.2% YoY), confirming resilient demand.
Management raised its 2025 guidance:
- Revenue: $9.28 billion (+6.1% YoY)
- Adjusted EBITDA: $4.56 billion (+11.2% YoY)
- AFFO per share: $38.18 (+9.0% YoY)
These improvements are supported by operational efficiency and foreign exchange tailwinds.
EQIX shares trade at 18.9x NTM P/FFO, implying a ~15% discount to its historical average and ~14% discount to the sector average. The stock is currently under pressure as the market is divided between those skeptical of its elevated investment pipeline amid high interest rates and those confident in the sector’s growth potential.
We believe the negative sentiment is temporary. Our team expects the Fed to cut rates next year, which would likely allow the company to bring its AFFO profitability forecast back to neutral territory. Fundamentally, the company benefits from the combination of critical infrastructure, business scale, and structural growth in the data center segment. In North America, vacancy rates are at a record low of 2.3%, with projected development volume reaching $1 trillion by 2030.
We reiterate our “Buy” recommendation with a target price of $940.
Price at the time of analysis: $772.6 → Upside potential: 21.7%.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.