Equinix Raises Growth Guidance and Capex Plan; Morgan Stanley Maintains positive rating Rating
Equinix raised its 2026 and long-term revenue and adjusted funds from operations (AFFO) growth guidance, citing strong momentum and enterprise capacity demand.
Equinix raised its 2026 and long-term revenue and adjusted funds from operations (AFFO) growth guidance, citing strong momentum and enterprise capacity demand. It also increased its annual capital expenditures guidance for 2027 through 2029 to USD 5 billion to USD 7 billion.
Annualized total bookings reached USD 424 million in the second quarter of 2026, while net interconnection additions increased by a record amount.
The firm said it sees capacity-demand benefits from AI inference workloads and a 3x risk-reward skew.
In the note's conclusion, record bookings and the substantial increase in the capital-spending plan are described as evidence that AI inference workloads are becoming a core driver of demand for data center infrastructure, significantly improving the visibility of Equinix's long-term growth.
It is also bullish on the broader data center infrastructure supply chain because an expected surge in AI inference demand could drive capacity expansion. Although the market has already developed some awareness of AI inference demand, the note says the magnitude of Equinix's annual USD 5 billion to USD 7 billion capital-expenditure guidance increase may not yet be fully reflected.
The catalysts identified in the note are the growth rate of AI inference workloads and the pace of capacity absorption; tangible progress in accelerating cabinet deliveries; the pace at which enterprise customers sign capacity contracts; and actual 2027 capital-expenditure execution compared with guidance.
Annualized total bookings reached USD 424 million in the second quarter of 2026, while net interconnection additions increased by a record amount.
The firm said it sees capacity-demand benefits from AI inference workloads and a 3x risk-reward skew.
In the note's conclusion, record bookings and the substantial increase in the capital-spending plan are described as evidence that AI inference workloads are becoming a core driver of demand for data center infrastructure, significantly improving the visibility of Equinix's long-term growth.
It is also bullish on the broader data center infrastructure supply chain because an expected surge in AI inference demand could drive capacity expansion. Although the market has already developed some awareness of AI inference demand, the note says the magnitude of Equinix's annual USD 5 billion to USD 7 billion capital-expenditure guidance increase may not yet be fully reflected.
The catalysts identified in the note are the growth rate of AI inference workloads and the pace of capacity absorption; tangible progress in accelerating cabinet deliveries; the pace at which enterprise customers sign capacity contracts; and actual 2027 capital-expenditure execution compared with guidance.