Equinix forecasts annual sales above estimates on AI data center demand
The logo of Equinix is pictured at the entrance of a data center in Pantin, outside Paris, France, December 7, 2016. REUTERS/Benoit Tessier
Feb 11 : Equinix forecast annual revenue above estimates on Wednesday, betting on strong artificial intelligence-linked demand for the largest data center operator's services, sending its shares up over 6 per cent in extended trading.
As corporations race to integrate generative AI, the surge in demand for specialized data centers to power the technology has benefited Equinix.
The company expects revenue between $10.12 billion and $10.22 billion for 2026, compared with estimates of $10.07 billion, according to data compiled by LSEG.
Equinix also forecast first-quarter sales between $2.50 billion and $2.54 billion, above estimates of $2.46 billion.
"Equinix plays an essential role helping businesses connect and manage increasingly distributed AI, cloud and networking infrastructure. This is a source of long-term competitive advantage," CEO Adaire Fox-Martin said in a statement.
The company has doubled down on expanding capacity, investing in new data centers in emerging markets like Chennai, India and Jakarta, Indonesia, to capture accelerating demand.
It reported revenue of $2.42 billion for the fourth quarter, missing estimates of $2.46 billion.
Results in the December quarter were modestly impacted by the timing of a transaction related to leasing one of its sites, which is now expected to close in early 2026, the company said.
Net income from continuing operations stood at $264 million in the quarter, compared to a year-ago loss of $14 million.
