AI data centers consume enough power to light entire cities, and the landlords collecting rent on those facilities are quietly growing their dividends. Four REITs sit at the center of this buildout, but their payout safety and growth outlooks differ…
A report from Colorado Legislative Council Staff notes that a single data center, when operating, can consume over a gigawatt of power, enough to power about 750,000 homes. Someone has to own the buildings, land, fiber, and power hookups behind that load, and four US-listed REITs collect rent on them. These names offer dividend growth with modest starting yields. Each pays a quarterly dividend covered by operating cash flow, and each is seeing demand from AI and cloud customers. Here is how safe each payout looks and what could slow it down.
American Tower: Tower Rent Today, CoreSite Growth Tomorrow American Tower (NYSE:AMT) owns over 148,000 communications tower sites, which it leases to wireless carriers under long-term, non-cancellable contracts. Through its CoreSite subsidiary, it also runs heavily interconnected US data centers. Towers still make up most of the business, but data centers are growing faster: Data Centers revenue rose 13.4% year over year to $297M in Q2, while US & Canada property revenue fell 2.5%.
At $188.97, the stock yields 3.93%, the highest in this group. The quarterly payout is $1.79, or $7.16 annualized.
Dividend safety: Management raised its full-year AFFO per-share guidance to $11.00-$11.17, well above the annual dividend. In Q2, free cash flow came to $1.158B, up 18.5%, against a quarterly distribution of about $834.1M. Net leverage of 4.9x sits within its 3 to 5x target range. The chief financial officer named supporting a growing dividend as the first capital priority. The quarterly payout dropped from $1.70 to $1.62 at the start of 2024. It then rose to $1.70 in 2025 and $1.79 in 2026.
Bull case: Chief executive Steven Vondran said “CoreSite’s campuses have become critical destinations for AI traffic and data exchange,” with nine of the top ten AI companies already in its facilities. The company raised its 2026 data center growth outlook to about 15% and expects “mid-teens or better stabilized yields” on new CoreSite investments. Its next earnings report comes October 27 before the open.
Risk: DISH-related cancellations cut $63M from US & Canada property revenue in Q2, and that turnover is still weighing on the largest segment.
Iron Mountain: Records Boxes Help Fund an AI Data Center Buildout Iron Mountain (NYSE:IRM) stores more than 735 million cubic feet of physical records across about 1,300 facilities, and the average box stays for about 14.5 years. That steady storage rent funds its newer businesses: 31 data centers in 21 markets with about 1.4 gigawatts of potential capacity, plus IT asset lifecycle management. Data centers, digital solutions and asset lifecycle management together now make up about 35% of revenue. Total revenue grew 18.5%, and data center revenue rose 38.8% to $262.9M.
The shares yield 2.94% at $109.94 per share. The quarterly dividend is $0.864, or $3.456 a year.
Dividend safety: The trailing four-quarter AFFO payout ratio was 60%, in line with management’s target in the low 60s. Full-year AFFO per share guidance was raised to $5.87 to $5.93. The company calls its latest 10% raise its fourth consecutive year of dividend increases, and the quarterly rate has risen from $0.65 to $0.715, then $0.785, then $0.864. Net lease-adjusted leverage ended Q2 at 4.8x.
Bull case: Data center leasing reached 110 MW year to date through July, and the backlog supports an additional $370 million of revenue beyond 2026. Chief executive William Meaney said recent London and Amsterdam deals were “a direct result of the large and expanding pipeline we have around AI inference.” Records retention held at 93.4%.
Risk: The company’s finances are extended. Shareholders’ equity is negative at $(955M), net debt is about $17.3B, and the newest bond carries a 6.25% coupon, so interest costs are rising.
Digital Realty: Pure-Play Scale With a Dividend Due for a Raise Digital Realty (NYSE:DLR) owns only data centers: 309 of them across 55+ markets and 30+ countries, with about 3.0 gigawatts of IT capacity in place and about 6.3 gigawatts planned. It reports one Data Center Services segment covering colocation, interconnection, and hyperscale leases for more than 5,500 customers. Quarterly revenue grew 29.9% year over year, the fastest pace in this group.
The stock yields 2.77% at $172.38 on a $1.22 quarterly dividend, or $4.88 a year.
Dividend safety: Q2 Core FFO excluding promote income was $2.13 per share, up 14%, and well above the $1.22 quarterly payout. Debt-to-adjusted EBITDA is 4.7x, below the company’s long-term 5.5x ceiling, and liquidity stands near $6 billion. The dividend record dates back to 2004 and trended higher over that period, but the payout has stayed at $1.22 per quarter since 2022. With FFO growing and the dividend flat, coverage continues to expand.
Bull case: Total backlog hit a record $1.9 billion at 100% share. Chief executive Andy Power said strong hyperscale leasing “drove our backlog to a new all-time high, derisking future growth.” That backlog adds visibility to future cash flow.
Risk: Quarterly earnings fell 58.7% year over year. FFO is the better measure of REIT coverage, but a drop that large in reported earnings is worth tracking as development costs and depreciation build.
Equinix: Smallest Yield, Strongest Dividend Growth Commitment Equinix (NASDAQ:EQIX) operates more than 270 data centers in more than 70 markets. It makes money from colocation (space, power, and cooling), interconnection (direct connections between customers), managed infrastructure, and its hyperscale xScale joint ventures. Quarterly revenue grew 16.7%, and Q2 brought a record 9,700 net interconnections.
At $955.03, the yield is 1.98%. The quarterly dividend is $5.16, or $20.64 annualized.
Dividend safety: Management set the payout ratio at 50%, the most conservative in this group. AFFO per share guidance is $42.69 to $43.29. Net leverage is 3.6x adjusted EBITDA, with about $7.7 billion in liquidity. The regular quarterly dividend has gone up every year in the record, from $1.69 in 2015 to $5.16 in 2026.
Bull case: Management expects dividend per share growth to about match AFFO per share growth, which it projects at 9-12% a year from 2027 through 2029. Chief executive Adaire Fox-Martin said, “Eight of the top ten model providers as well as eight of the top ten neo clouds are already running their key networking workloads on Equinix today.” Equinix reports October 28 after the close.
Risk: Spending is rising fast. Capex is guided at $5.0 to $6.0 billion for 2026 and $5.0 to $7.0 billion a year through 2029, with leverage projected to rise by about one turn over that period.
Which Income Investors This Group Fits These four REITs fit dividend-growth investors with a long horizon who will take a smaller check today for one that grows. American Tower pays the most up front. Iron Mountain has the strongest recent run of increases. Equinix has the clearest link between dividend growth and AFFO growth.
Digital Realty has the widest gap between rising FFO and a flat payout. Investors focused on maximum current income can find higher starting yields elsewhere, while these four REITs collect rent as landlords in the AI expansion. (For readers who want to look past the landlords to the power, cooling, and networking suppliers feeding the same expansion, we rounded up seven of them in a free report here.)
Contact [email protected] for any questions or corrections.
Wall Street analysts expect Equinix (EQIX - Free Report) to post quarterly earnings of $10.51 per share in its upcoming report, which indicates a year-over-year increase of 6.9%. Revenues are expected to be $2.57 billion, up 10.9% from the year-ago quarter.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
With that in mind, let's delve into the average projections of some Equinix metrics that are commonly tracked and projected by analysts on Wall Street.
It is projected by analysts that the 'Revenues- Non-recurring revenues' will reach $136.11 million. The estimate indicates a change of +34.8% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Recurring revenues' at $2.43 billion. The estimate suggests a change of +9.5% year over year.
The collective assessment of analysts points to an estimated 'Revenues- Recurring revenues- Managed infrastructure' of $120.34 million. The estimate suggests a change of +2% year over year.
Analysts predict that the 'Revenues- Recurring revenues- Colocation' will reach $1.81 billion. The estimate suggests a change of +10.3% year over year.
The combined assessment of analysts suggests that 'Geographic Revenues- EMEA' will likely reach $861.73 million. The estimate suggests a change of +9.9% year over year.
Based on the collective assessment of analysts, 'Geographic Revenues- Americas' should arrive at $1.16 billion. The estimate indicates a year-over-year change of +11.8%.
Analysts forecast 'Geographic Revenues- Asia-Pacific' to reach $542.71 million. The estimate indicates a year-over-year change of +9.2%.
The consensus estimate for 'Geographic Revenues- Americas- Non-recurring' stands at $63.03 million. The estimate points to a change of +31.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Quarter End Utilization - Worldwide' should come in at 77.7%. Compared to the current estimate, the company reported 78.0% in the same quarter of the previous year.
Analysts' assessment points toward 'Cabinet Equivalent Capacity - EMEA' reaching 142,850 . The estimate compares to the year-ago value of 138,100 .
Analysts expect 'Cabinet Equivalent Capacity - APAC' to come in at 97,150 . The estimate compares to the year-ago value of 91,000 .
The consensus among analysts is that 'Quarter End Utilization - EMEA' will reach 77.7%. The estimate is in contrast to the year-ago figure of 77.0%.
View all Key Company Metrics for Equinix here>>>
Equinix shares have witnessed a change of -7.9% in the past month, in contrast to the Zacks S&P 500 composite's -1.2% move. With a Zacks Rank #3 (Hold), EQIX is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
On October 22, 2026, Equinix Inc (EQIX) shares fell 4.3%, trading at $952.62. This decline marks a significant 10.1% drop over the past month, while the stock h
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
EPIC allows customers to test and validate liquid-cooled infrastructure in real-world environments alongside leading technology partners
, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX) today introduced the Equinix Enhanced Performance Innovation Centers (EPIC), a global network of production-ready liquid cooling environments. The centers enable enterprises to test, build and deploy high-density AI infrastructure with the confidence and support of Equinix experts and leading technology partners. EPIC is live in Frankfurt, London, Osaka, Paris and Sydney, with more locations expected to open in 2027.
Enhanced Performance Innovation Center (EPIC) at Equinix's OS3 data center in Osaka
As AI moves from experimentation to production, how infrastructure is cooled, powered and connected has become a strategic imperative that determines deployment speed, cost and performance. Increasingly powerful GPU platforms are driving higher rack densities and greater demand for liquid cooling. Few enterprises have the expertise to get cooling, power, networking and facility operations working together, and a gap in any one can stall a deployment. The result is a growing pressure to bring AI infrastructure readiness in line with the pace of adoption.
EPIC helps address that challenge by giving enterprises a place to prove it out. Inside live Equinix data centers, enterprises can trial the latest liquid-cooled GPU and CPU platforms with leading hardware partners and test AI training and inference workloads under real-world conditions. With Equinix experts alongside, they can identify infrastructure and operational issues before production and make informed decisions as they scale. The result is a faster, lower-risk path from proof of concept to production.
"Liquid cooling is an essential component of modern enterprise infrastructure and a hard requirement for customer's deploying AI," said Brian Stein, Senior Vice President, Infrastructure Products and Services at Equinix. "EPIC provides businesses with a place to test, validate and build with confidence before they commit to large-scale deployments. We're putting our global infrastructure footprint and unmatched ecosystem to work to accelerate the path from concept to production for our customers."
EPIC can help enterprise teams:
Work with leading technology partners: Work with Equinix and our ecosystem of technology partners and original equipment manufacturers (OEMs) to assess combined liquid cooling stacks under field conditions. See how the systems integrate to help get to deployment faster.
Get hands-on infrastructure experience: See liquid cooling technologies in action, understand how each fits into specific environments and address operational questions that matter before deployments.
Test their infrastructure where it will run: Each EPIC location operates inside a live Equinix data center, giving customers exposure to liquid cooling under real production conditions.
EPIC builds on Equinix's existing innovation spaces. In 2022 Equinix announced its first Co-Innovation Facility where partners could collaborate on testing new technology before it entered Equinix data centers. In 2024, Equinix rolled out Solution Validation Centers for customers to validate deployments and see how Equinix supports distributed environments. EPIC brings that same experiential approach to liquid cooling and high-density AI deployments.
"Liquid cooling was new territory for us, so we built our confidence step by step," said Matthieu Blumberg, SVP of Engineering Infrastructure, Security, Internal IT & CISO at Criteo. "Our AI runs across a distributed footprint, and the infrastructure must perform the same way wherever it sits. We saw how liquid cooling performed in practice, learned what it took to run it well, and then committed to scale. Equinix was with us at every stage, with the expertise and the live environment to prove it out first. That's what turned liquid cooling from an open question into a core part of our distributed AI infrastructure."
Enterprises interested in visiting an EPIC site can contact their Equinix account team or visit the EPIC program page here.
Additional Resources
Where Enterprises Test Liquid Cooling Before They Scale AI [Blog Post]
Announcing EPIC [Product Release Note]
EPIC Liquid Cooling [Video]
Liquid Cooling, Live in Production [Program Page]
About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Redwood City, Equinix (EQIX - Free Report) is a Finance stock that has seen a price change of 28.69% so far this year. Currently paying a dividend of $5.16 per share, the company has a dividend yield of 2.09%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4.45%, while the S&P 500's yield is 1.38%.
Looking at dividend growth, the company's current annualized dividend of $20.64 is up 10% from last year. Over the last 5 years, Equinix has increased its dividend 5 times on a year-over-year basis for an average annual increase of 13.62%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Equinix's current payout ratio is 50%, meaning it paid out 50% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, EQIX expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $43.45 per share, representing a year-over-year earnings growth rate of 13.36%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EQIX is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
SummaryU.S. equities stumbled as AI-bubble concerns overwhelmed otherwise resilient fundamentals, while September inflation ran hot but remained heavily energy-driven, complicating the Fed’s path without clearly forcing an October hike.Treasuries rallied sharply despite hotter CPI and PPI, with the 2-Year reversing from 4.95% to 4.71% as dovish Fed signals and risk-off flows pushed October hike odds.Oil reemerged as the key macro pressure point, with WTI surging above $100 as Saudi and Hormuz risks intensified, threatening to reverse recent relief in gasoline and diesel prices.REITs advanced for a second straight week after a record seven-week losing streak, while housing stocks also firmed as falling long-term yields offered modest hope for mortgage-rate relief.REIT earnings season began with fundamentals still broadly healthy: Prologis raised FFO and NOI guidance, Ladder posted solid results, and dividend trends remained stable despite the recent rate-driven selloff.iREIT®+HOYA Capital members get exclusive access to our real-world portfolio. See all our investments here » Jean Suplicy/iStock Editorial via Getty Images
Real Estate Weekly Outlook U.S. markets stumbled this week as renewed concerns around the economics of the AI investment boom collided with another round of hotter-than-expected inflation data. A sharp selloff in AI-linked names reflected
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First Citizens Bank & Trust Co. boosted its stake in shares of Equinix, Inc. (NASDAQ:EQIX – Free Report) by 435.0% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,530 shares of the financial services provider’s stock after purchasing an additional 1,244 shares during the period. First Citizens Bank & Trust Co.’s holdings in Equinix were worth $1,548,000 as of its most recent filing with the SEC.
A number of other hedge funds have also recently bought and sold shares of the stock. SJS Investment Consulting Inc. grew its stake in shares of Equinix by 27.3% in the first quarter. SJS Investment Consulting Inc. now owns 42 shares of the financial services provider’s stock valued at $41,000 after buying an additional 9 shares in the last quarter. Fulton Bank N.A. increased its holdings in Equinix by 3.1% during the second quarter. Fulton Bank N.A. now owns 328 shares of the financial services provider’s stock worth $342,000 after buying an additional 10 shares during the last quarter. Avion Wealth raised its position in Equinix by 73.3% during the first quarter. Avion Wealth now owns 26 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 11 shares in the last quarter. High Net Worth Advisory Group LLC raised its position in Equinix by 5.3% during the second quarter. High Net Worth Advisory Group LLC now owns 219 shares of the financial services provider’s stock worth $229,000 after acquiring an additional 11 shares in the last quarter. Finally, Angeles Wealth Management LLC raised its position in Equinix by 3.7% during the second quarter. Angeles Wealth Management LLC now owns 310 shares of the financial services provider’s stock worth $323,000 after acquiring an additional 11 shares in the last quarter. 94.94% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades
A number of analysts have commented on EQIX shares. Rothschild & Co Redburn assumed coverage on shares of Equinix in a research note on Monday, September 21st. They issued a “buy” rating and a $1,261.00 price target for the company. Evercore restated an “outperform” rating and set a $1,270.00 price objective (up from $1,240.00) on shares of Equinix in a research note on Tuesday, August 18th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,340.00 target price (up from $1,300.00) on shares of Equinix in a report on Thursday, July 30th. The Goldman Sachs Group upped their target price on shares of Equinix from $1,015.00 to $1,060.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Finally, TD Cowen raised their target price on shares of Equinix from $1,143.00 to $1,166.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Equinix has an average rating of “Moderate Buy” and a consensus price target of $1,206.55.
Read Our Latest Stock Analysis on Equinix
Insider Buying and Selling at Equinix
In other news, insider Michael Paladin sold 307 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $1,035.01, for a total transaction of $317,748.07. Following the transaction, the insider directly owned 2,450 shares of the company’s stock, valued at approximately $2,535,774.50. This trade represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Kurt Pletcher sold 135 shares of Equinix stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $1,075.50, for a total transaction of $145,192.50. Following the completion of the sale, the insider owned 4,077 shares of the company’s stock, valued at approximately $4,384,813.50. The trade was a 3.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 4,770 shares of company stock valued at $4,884,197 in the last quarter. Company insiders own 0.27% of the company’s stock.
Equinix Stock Performance
NASDAQ:EQIX opened at $996.26 on Friday. Equinix, Inc. has a 1-year low of $720.62 and a 1-year high of $1,128.68. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.44. The stock has a market cap of $98.30 billion, a P/E ratio of 64.15, a PEG ratio of 1.42 and a beta of 0.98. The stock has a 50 day simple moving average of $1,039.57 and a 200 day simple moving average of $1,049.94.
Equinix (NASDAQ:EQIX – Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $11.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.73 by $7.05. Equinix had a net margin of 15.64% and a return on equity of 10.76%. The company had revenue of $2.62 billion during the quarter, compared to analysts’ expectations of $2.59 billion. During the same quarter in the previous year, the business posted $9.91 earnings per share. Equinix’s quarterly revenue was up 16.4% on a year-over-year basis. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. Research analysts anticipate that Equinix, Inc. will post 38.23 earnings per share for the current year.
Equinix Dividend Announcement
The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Wednesday, August 19th were issued a $5.16 dividend. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $20.64 dividend on an annualized basis and a yield of 2.1%. Equinix’s payout ratio is currently 132.90%.
About Equinix
(Free Report)
Equinix, Inc is a global digital infrastructure company that operates data centers and provides colocation, interconnection and related services. Its International Business Exchange (IBX) data centers allow businesses, cloud providers, network operators, financial institutions and government organizations to deploy and connect critical information technology infrastructure.
The company’s services include space, power and physical security for customer equipment, as well as private connections to cloud and network providers.
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Data centers need more than servers and software to run the AI boom. They need landlords willing to pour billions into power, land, and network connections before a single tenant moves in, and three REITs are already collecting rent on…
AI and cloud software need physical buildings to run in, and the hard part is getting enough power and network connections into them. The Department of Energy projects data centers will account for up to 12% of U.S. electrical demand by 2028, and the landlords that already hold powered, connected capacity are being paid for it. Equinix (NASDAQ:EQIX) added a record 9,700 net interconnections in Q2 2026, and annualized gross bookings rose 23% YoY to $424M. All three REITs below are equity REITs: they own the buildings and collect rent from tenants. None of them is a mortgage REIT, the kind that holds property loans and takes on interest rate and credit risk that landlords avoid.
One note on how we measure safety. A REIT’s net income is reduced by large depreciation charges on its buildings, so a standard earnings payout ratio makes a REIT dividend look riskier than it is. The better yardstick is funds from operations (FFO), or adjusted FFO (AFFO), which adds back depreciation and subtracts the recurring capital spending needed to maintain the properties. Every coverage figure below is based on FFO or AFFO.
Equinix
$995.90
$20.64
2.07%
~48% of 2026 AFFO/share guidance midpoint
Digital Realty
$172.09
$4.88
2.84%
~60% of 2026 Core FFO/share guidance midpoint
Iron Mountain
$110.86
$3.456
3.12%
60% trailing four-quarter AFFO payout
All three offer moderate yields, which makes this a group built on dividend growth, and the coverage numbers back that up.
Equinix: Best AFFO Coverage and a Dividend That Grows With It
What it owns: Equinix runs its IBX colocation data centers worldwide, where enterprises, cloud providers, and networks rent space and connect directly to each other. In Q2 2026, revenue split into Americas $1.251B, EMEA $845M, and Asia Pacific $529M. The company operates 194 stabilized assets that were 82% utilized and earned a 27% cash-on-cash yield on gross property and equipment.
Demand backdrop: Management said “Eight of the top 10 model providers, as well as eight of the top 10 neoclouds, are already running their key networking workloads on Equinix today.” Q2 revenue rose 16.4% YoY to $2.625B, beating the $2.582B consensus, and monthly recurring revenue grew double digits for the third straight quarter. Chief executive Adaire Fox-Martin said “Demand is clearly exceeding the assumptions in our prior long-term outlook.”
Yield and coverage: At $995.90, the $20.64 forward dividend yields 2.07%. Raised 2026 guidance calls for AFFO per share of $42.69 to $43.29, so the dividend uses about 48% of the midpoint. Equinix expects to pay about $2.039B in cash dividends against $4.240 to $4.300B of AFFO. The quarterly payout went from $4.69 in 2025 to $5.16 in 2026.
Bull case: Through 2029, management targets 10% to 13% annual revenue growth, 9% to 12% annual AFFO per share growth, and dividend growth that roughly tracks AFFO per share growth. The company says all three gigawatts of land it controls either has contracted power or a high degree of confidence that power will be contracted. The shares are up 31.95% year to date.
Risk: The buildout is expensive. Annual capex is guided to $5 billion to $7 billion through 2029, and management expects leverage to rise about one turn from 3.6 times while its blended cost of capital climbs about 150 basis points. On top of that, Equinix has 52 expansion projects across 33 markets to deliver on schedule.
Digital Realty: Record Leasing, Frozen Dividend
What it owns: Digital Realty (NYSE:DLR) operates more than 300 data centers worldwide serving about 6,000 customers, from single-cabinet deployments to entire hyperscale campuses. It has 1.4 gigawatts under construction at a total development cost of $20 billion, with more than 80% of it in the Americas, including Northern Virginia, Charlotte, Atlanta, São Paulo, and Kansas City.
Demand backdrop: In Q1 2026, Digital Realty signed a 200-MW AI inference lease, the largest hyperscale deal in its history. In Q2, total backlog hit a record $1.4 billion at Digital Realty’s share, about 30% of in-place data center revenue, and the development pipeline was 63% pre-leased at an expected stabilized yield of 11.5%. Cash renewal spreads topped 25%, a record. Management also secured 600 megawatts of utility power in Kansas City, with delivery scheduled to begin in early 2028.
Yield and coverage: The $4.88 annual dividend yields 2.84% at $172.09. Digital Realty reports Core FFO, and its 2026 guidance excluding promote income is $8.15 to $8.20 per share. That puts the payout at about 60% of the midpoint. Keep in mind that FFO does not subtract recurring capital spending, so coverage on an AFFO basis would be somewhat tighter. Income investors should also notice that the quarterly dividend has been stuck at $1.22 for every ex-dividend date from 2022-03-14 through 2026-09-15, even as Core FFO excluding promote income grew 14% YoY in Q2.
Bull case: Management expects to extend double-digit Core FFO per-share growth into 2027 and beyond, and it raised its 2026 cash renewal spread outlook to 9% to 11%. A wider gap between Core FFO and a flat dividend gives the board plenty of room to resume increases.
Risk: The big leases come from a handful of tenants. Management said its largest hyperscale signings over the past 10 quarters came from six different top hyperscalers, and it called this leasing “episodic from quarter to quarter.” The company is also issuing shares to pay for growth: it sold 7.3M shares via ATM for ~$1.3B net, and net capex is guided to $4.25 billion to $4.75 billion. The stock is up just 2.97% over the past year.
Iron Mountain: Records Storage Cash Funds a Hyperscale Push
What it owns: Iron Mountain (NYSE:IRM) is a hybrid. Its physical records storage business generated $1.4 billion of Q2 revenue at a 43% adjusted EBITDA margin, with storage retention of 93.4%. That steady cash flow pays for a fast-growing data center portfolio spanning Northern Virginia, London, Madrid, Miami, Amsterdam, New Jersey, and Mumbai.
Demand backdrop: Q2 data center revenue rose 39% to $263 million at a 52.2% adjusted EBITDA margin. Iron Mountain has leased 110 MW year to date through July, including a 51 megawatt lease in Mumbai with a major global hyperscaler on a 10-year contract and a 25 megawatt lease in London. Renewal spreads were +12% cash. About 325 megawatts of leasable capacity is expected to energize over the next 24 months, and the backlog supports $370M of incremental revenue beyond 2026.
Yield and coverage: The $0.864 quarterly dividend annualizes to $3.456, a 3.12% yield at $110.86, the highest of the three. The trailing four-quarter AFFO payout ratio is 60%, in line with the company’s target in the low 60s percent. 2026 AFFO per share guidance was raised to $5.87 to $5.93. The latest 10% increase marked the fourth consecutive year of dividend growth.
Bull case: Iron Mountain makes money across the full life of a data center. It leases capacity to hyperscalers, then gets paid to decommission their servers when they upgrade. Asset lifecycle management revenue rose 88%, and growth businesses now make up 35% of total revenue. The shares are up 36.69% year to date.
Risk: The balance sheet is the weakest of the three. Net debt stands at $17.3B, shareholders’ equity is negative at $(955M), and net lease-adjusted leverage is 4.8 times. Iron Mountain’s newest $1.5 billion bond carries a 6.25% coupon, a reminder that its growth is paid for with expensive borrowed money. Management also warned that its hyperscale leases “tend to be lumpy in nature.”
Ranking These Three Data Center REITs on Dividend Safety
For retirement income, Equinix leads this group: it has the lowest AFFO payout, a dividend that management has tied to AFFO growth, and the most moderate leverage. Iron Mountain pays the most, with a payout that AFFO still covers comfortably, but it carries the heaviest debt. Digital Realty is leasing faster than either of them, yet its dividend has not moved in four years, so retirees counting on rising income are waiting on the board. All three were down more than 3% over the past week. Over the next few quarters, the numbers to watch are AFFO per share growth and the cost of new debt, since those will tell you whether payouts keep rising.
Contact [email protected] for any questions or corrections.
When a CNBC anchor made the case for American AI dominance on a comedy show, she got the national security argument exactly right and the investment argument exactly backwards. Here is what the hyperscalers spending nearly two trillion dollars over…
One of the clearest arguments for American AI this fall came on a late-night comedy show. CNBC anchor Sara Eisen made it while sitting beside Sen. Thom Tillis on HBO’s Real Time with Bill Maher. Where she said it matters, because the public fight over AI now plays out in front of voters, and investors mostly talk among themselves.
Her case was about competition with Beijing: “We do not want to not be on the side of progress. And we do not want to let China get ahead of us on this dangerous technology. We want to own it, and we want our best people doing it.”
The discussion passed over the money question underneath. The top five hyperscalers were expected to spend nearly $800 billion in 2026 and $1.3 trillion in 2027 on capital projects. That spending runs into local power grids, water systems and zoning boards. The political resistance is showing up faster than the revenue meant to pay for it.
Political Risk Now Sets the Timeline for AI Returns Moratoriums and permitting fights decide where capacity gets built, how long it takes and what it costs, and when a project slips, its cash flows move further out, and discounting carries that delay straight into the share price. The timing gap already weighs on Amazon (NASDAQ:AMZN | AMZN Price Prediction). It said data center spending starts about two years before servers can earn money, and its trailing free cash flow is -$7.6 billion.
On a free cash flow basis, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) posted -$5.86 billion after $44.92 billion of quarterly capex. It also paused buybacks.
Equinix (NASDAQ:EQIX) announces a project only after it has cleared internal checks on power, connection and permitting. Management credits that sequence for keeping builds on schedule.
Why the Backlash Crosses Party Lines Residents object to power draw, water use and their electric bills far more than to the software. One north Denver campus was projected to use up to 805,000 gallons of water a day.
In the PJM region, the grid’s independent market monitor concluded that data center load growth is “the primary reason” for tight supply and high capacity prices. Because the complaint is about household costs, it shows up in red and blue states alike, and Maryland and California moved to set large-load rate rules, while Indiana and Idaho moved to speed up permitting.
Because a utility bill is concrete, this kind of complaint carries weight with voters.
A Race Justifies Spending Without Guaranteeing Returns Eisen’s China argument holds up well on national security grounds. A rival that controlled frontier AI would carry military and economic costs that no government will accept. As an investment thesis it is weaker, because spending a country needs can still let down the companies doing it.
To back frontier labs that also buy its chips, NVIDIA (NASDAQ:NVDA) has invested nearly $50 billion. Management said “some will call this circular financing,” and its supply commitments rose to $279 billion.
Builders who call AI inevitable are probably right about deployment. Electricity was inevitable too, but much of its long-term value flowed to customers and later entrants rather than to the original builders.
Sentiment Starts to Bite When It Becomes Law Institutional money sets prices, and it kept moving toward AI. Over the past year the S&P 500 rose 19.15%, and over six months software stocks gained 41.46%.
Investors paid most for physical infrastructure, expecting the expansion to keep requiring hardware, with Vertiv (NYSE:VRT) up 47.86% year to date, ahead of Equinix at 36.81% and NVIDIA at 21.64%. Public mood starts to move prices once it turns into statutes, permit denials or utility rate decisions. That shift also separates AI companies by their exposure to local politics.
Chip designers and model developers have little such exposure. Anything that requiring land, a grid connection and a permit carries a separate risk, and that includes Equinix’s 52 expansion projects. Most investors miss that part of the story. The power, cooling and networking suppliers behind those sites are why we pulled seven of them into a free report on the AI buildout beyond the chipmakers.
Which AI Stocks Carry the Least Permitting Risk In the bull case, Microsoft (NASDAQ:MSFT) says demand still exceeds supply, and NVIDIA says it can fill only about 70% of orders.
The bear case rests on concentration, heavy spending with no visible return at Alphabet and Amazon, and growing permitting friction. NVIDIA also starts from a value of roughly $5.46 trillion.
All things considered, the AI stocks with the least permitting exposure sit in the layer that zoning boards can least affect. That layer includes NVIDIA, plus Microsoft, which expects to stay free cash flow positive even with FY27 capex near $175 billion.
Vertiv raised its revenue guidance to $13.8 to $14.2 billion. Its gains so far, though, assume permits keep coming through on time.
Contact [email protected] for any questions or corrections.
Four companies are betting everything on the AI data center boom, but their paydays fall on wildly different timelines and their risks look nothing alike. Before you pick one, find out which three are already collecting cash and what separates…
Eaton (NYSE:ETN | ETN Price Prediction), Equinix (NASDAQ:EQIX), Fermi (NASDAQ:FRMI), and Vistra (NYSE:VST) are all built on the same idea: AI is pushing up demand for data center capacity and electricity. Their return timelines differ. Three of them sell products and services today, but Fermi is still pre-revenue, and staged delivery under its anchor contract is expected to begin in late 2027.
We judged all four on five measures:
How much revenue they earn from AI and data centers today
Backlog and booking momentum
Margins
The strength of their guidance
Execution and financing risk
Fermi’s risk is a different kind from the other three, so it appears at number 4 as a separate case. The three companies getting paid now follow in ranked order.
4. Fermi Is a Development Project With a 2027 Payday
Fermi is a pre-revenue, development-stage company building the Project Matador campus in the Texas Panhandle. The bull case rests on signed contracts and permits. Fermi signed a 15-year binding lease with TensorWave covering 222 MW, which the company says represents $6.50 billion in contracted revenue. It holds a 6 GW federal air permit, and turbines delivered to the Port of Houston bring its secured power to 1.2 GW. On October 13, Barron’s reported that shares jumped on a chipmaker-related deal and that analysts see hurdles ahead (Barron’s). That deal is a separate announcement from the binding TensorWave lease.
Fermi has never recorded revenue. It lost $486.38 million in 2025, or $1.13 per share. Over six months, its cash fell from $408.5 million to $91.7 million. A class action suit says that the company overstated tenant demand.
A prospective customer also terminated an advance construction agreement in December 2025. Fermi went public at $21.00 per share. The stock now trades at $3.72.
Fermi is classified as a specialty real estate investment trust (REIT) and is seeking REIT qualification, and it has no revenue and pays no dividend. Its REIT label reflects its tax structure, and any income depends on future power delivery.
3. Vistra Sells Power Now and Has Contracts Starting in 2027
Vistra sells electricity from its plants in Texas (the ERCOT grid) and the mid-Atlantic and Midwest (the PJM grid). In the second quarter, Ongoing Operations adjusted EBITDA rose to $1.77 billion from $1.35 billion, even though $472 million in unrealized derivative losses pulled GAAP net income down to $305 million. The AI layer is contracted: long-term power purchase agreements with a hyperscaler at its PJM nuclear sites begin contributing in 2027. Vistra also committed up to $1.0 billion to Helix, a digital infrastructure venture formed with partners that include the Kuwait Investment Authority.
Vistra reaffirmed its guidance, and management said 2027 is moving toward the lower end of its range because Texas power prices for future delivery have fallen. The company pays $0.91 per share a year in dividends and has bought back about $6.5 billion of stock since 2021. The stock trades at 13x forward earnings.
2. Equinix Turns AI Traffic Into Recurring Rent
Equinix leases data center space (colocation) and charges for the network links between customers (interconnection). Second-quarter revenue reached $2.625 billion, beating the $2.58 billion consensus, at a 53% adjusted EBITDA margin. Annualized gross bookings rose 23%, and the company added a record 9,700 net interconnections. Management called its higher outlook “the largest single guidance raise in the history of our company.” The trade-offs include capital spending of $5 billion to $7 billion a year through 2029, rising leverage, and a valuation of 52x forward earnings. The quarterly dividend rose to $5.16 from $4.69, and management expects dividend growth to roughly match growth in AFFO per share (adjusted funds from operations, the main REIT cash flow measure).
1. Eaton Has the Biggest Revenue and the Deepest Backlog
Eaton sells switchgear, backup power systems (UPS), and, after buying Boyd Thermal, liquid cooling. Second-quarter revenue rose 21.4% to $8.531 billion, and adjusted EPS of $3.15 beat estimates for the fifth straight quarter. Electrical backlog grew 43%. Eaton raised full-year adjusted EPS guidance to $13.40 to $13.60. Its chief executive said total U.S. data center backlog has reached “307 gigawatts, or 15 years of backlog at 2025 build rates.” The weak spot is debt: long-term debt rose to $18.5 billion from $8.8 billion. The stock trades at 27x forward earnings. The quarterly dividend rose to $1.10 from $1.04.
What to Watch as Each One Starts Paying
These four pay off on different timelines. Eaton, Equinix, and Vistra already produce cash flow and pay dividends that are growing, giving them current income profiles. Fermi carries development-stage risk, and any delay would weigh directly on its outlook. (We rounded up seven non-chipmaker suppliers riding the same AI data center expansion in a free report you can grab here.) To judge whether Fermi is turning contracts into delivered power, watch for roughly 200 MW of initial commercial power within six months, the TensorWave delivery start, new binding customer agreements, the pace at which it uses its convertible note proceeds, and the outcome of the class action.
Contact [email protected] for any questions or corrections.
Equinix (EQIX - Free Report) closed the most recent trading day at $1,026.06, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.6%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.64%.
Prior to today's trading, shares of the data center operator had lost 1.24% was narrower than the Finance sector's loss of 3.99% and lagged the S&P 500's gain of 1.34%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. The company is slated to reveal its earnings on October 28, 2026. The company's upcoming EPS is projected at $10.51, signifying a 6.92% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.57 billion, up 10.95% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $43.45 per share and a revenue of $10.27 billion, demonstrating changes of +13.36% and +11.46%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Equinix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Equinix presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Equinix is currently exchanging hands at a Forward P/E ratio of 23.27. This indicates a premium in contrast to its industry's Forward P/E of 13.48.
Also, we should mention that EQIX has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Retail industry had an average PEG ratio of 2.1 as trading concluded yesterday.
The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Pensionfund PDN trimmed its stake in Equinix, Inc. (NASDAQ:EQIX – Free Report) by 5.6% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,514 shares of the financial services provider’s stock after selling 800 shares during the period. Equinix accounts for approximately 5.5% of Pensionfund PDN’s holdings, making the stock its 4th largest position. Pensionfund PDN’s holdings in Equinix were worth $13,670,000 as of its most recent SEC filing.
Other institutional investors also recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Equinix in the second quarter worth about $11,930,074,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Equinix by 26,831.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,239,122 shares of the financial services provider’s stock valued at $1,291,648,000 after acquiring an additional 1,234,521 shares during the period. Legal & General Group Plc bought a new position in shares of Equinix during the 2nd quarter valued at approximately $1,181,260,000. Canada Pension Plan Investment Board purchased a new stake in Equinix in the 2nd quarter worth approximately $1,163,662,000. Finally, Deutsche Bank AG purchased a new stake in Equinix in the 2nd quarter worth approximately $1,118,930,000. 94.94% of the stock is owned by institutional investors.
Equinix Price Performance EQIX traded down $6.92 during trading on Monday, hitting $1,018.80. 126,375 shares of the company traded hands, compared to its average volume of 590,431. The company has a market cap of $100.52 billion, a PE ratio of 65.73, a P/E/G ratio of 1.47 and a beta of 0.98. Equinix, Inc. has a 1 year low of $720.62 and a 1 year high of $1,128.68. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.44. The stock’s 50-day simple moving average is $1,042.86 and its two-hundred day simple moving average is $1,046.59.
Equinix (NASDAQ:EQIX – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $11.78 EPS for the quarter, beating the consensus estimate of $4.73 by $7.05. Equinix had a net margin of 15.64% and a return on equity of 10.76%. The business had revenue of $2.62 billion during the quarter, compared to the consensus estimate of $2.59 billion. During the same quarter in the prior year, the firm earned $9.91 EPS. The business’s revenue was up 16.4% on a year-over-year basis. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. As a group, sell-side analysts anticipate that Equinix, Inc. will post 38.23 earnings per share for the current fiscal year. Equinix Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Wednesday, August 19th were issued a dividend of $5.16 per share. This represents a $20.64 annualized dividend and a yield of 2.0%. The ex-dividend date was Wednesday, August 19th. Equinix’s dividend payout ratio (DPR) is currently 132.90%.
Wall Street Analysts Forecast Growth Several brokerages have weighed in on EQIX. Stifel Nicolaus lifted their price target on shares of Equinix from $1,250.00 to $1,265.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Weiss Ratings downgraded shares of Equinix from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday. Evercore restated an “outperform” rating and set a $1,270.00 target price on shares of Equinix in a research note on Tuesday, August 18th. UBS Group upped their target price on shares of Equinix from $1,210.00 to $1,265.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, Scotiabank reiterated a “sector perform” rating and issued a $1,208.00 price target on shares of Equinix in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Equinix has a consensus rating of “Moderate Buy” and a consensus price target of $1,206.96.
Check Out Our Latest Stock Report on Equinix
Insiders Place Their Bets In other news, insider Kurt Pletcher sold 135 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $1,075.50, for a total transaction of $145,192.50. Following the sale, the insider directly owned 4,077 shares of the company’s stock, valued at $4,384,813.50. This represents a 3.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Paladin sold 307 shares of the firm’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $1,035.01, for a total transaction of $317,748.07. Following the completion of the transaction, the insider directly owned 2,450 shares of the company’s stock, valued at approximately $2,535,774.50. This trade represents a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,770 shares of company stock valued at $4,884,197 in the last quarter. 0.27% of the stock is currently owned by insiders.
Equinix Company Profile (Free Report)
Equinix, Inc is a global digital infrastructure company that operates data centers and provides colocation, interconnection and related services. Its International Business Exchange (IBX) data centers allow businesses, cloud providers, network operators, financial institutions and government organizations to deploy and connect critical information technology infrastructure.
The company’s services include space, power and physical security for customer equipment, as well as private connections to cloud and network providers.
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The AI data center buildout is minting fortunes for a handful of companies, but almost none of them pay a dividend. Four REITs sit right at the intersection of that infrastructure boom and steady income, and their payout safety tells…
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The AI data center boom has produced plenty of growth stories, but only a few of those companies pay a dividend. If you want income from this theme, you have to own the landlords and the infrastructure. Four US-listed REITs with real data center exposure pay dividends. Even the highest yield of the four, American Tower (NYSE:AMT), at about 4.44%, is well short of ultra-high-yield territory. What these names offer is coverage. Each one pays out a manageable share of its funds from operations, and AI leasing keeps driving those cash flows higher.
American Tower: Highest Yield on a Thin Data Center Bench American Tower is mostly a global cell tower landlord, but its CoreSite data center business is where the AI demand shows up. In the second quarter, Data Centers segment revenue rose 13.4% to $297M, and management now expects data center growth of about 15% for the full year. On the call, management said “nine of the top 10 AI companies and three of the top five NeoClouds are deployed within our facilities.”
Yield: The forward dividend of $7.16 per share on a price of $161.18 works out to roughly 4.44%.
Dividend safety: For a REIT, the right test is AFFO (adjusted funds from operations). 2026 AFFO per share guidance is $11.00 to $11.17, so the forward dividend uses about 64.59% of the midpoint. Free cash flow came in at $1.16B (+18.5%) for the quarter. Leverage ended at 4.9 times, inside the company’s 3 to 5 times target range. The quarterly payout has grown from $0.21 in 2012 to $1.79 today, and the latest step was a 5.3% year-over-year increase. The CFO, Rod Smith, ranked the payout first among uses of capital: “First and foremost, it’s supporting the dividend and a growing dividend.”
For the bull case, the stock is down 13.21% over the past year, which raises the yield for new buyers. Management also called this year “a trough for attributable AFFO per share growth” and expects growth to return to the mid to high single-digit range heading into 2027.
Risk: Towers still make up most of the business, and tower churn can drown out data center gains. DISH cancellations cost $63M in the quarter and driving U.S./Canada property revenue down 2.5%.
Iron Mountain: Dividend Raised Four Years Running With AFFO Room to Spare Iron Mountain (NYSE:IRM) started in records storage and now makes more and more from data centers and from asset lifecycle management (ALM), which means decommissioning and reselling old servers. Data center demand gets there it two ways: leasing and hardware refresh cycles. Global data center revenue rose 39% to $263 million, and data center decommissioning revenue more than doubled, rising more than 100%. About 325 megawatts of available capacity is expected to come online over the next 24 months.
Yield: At about 3.05% on a $3.456 forward dividend, the yield is modest. Iron Mountain makes this list because the payout keeps growing.
Dividend safety: The CFO, Barry Hytinen, put it simply: “On a trailing four-quarter basis, our AFFO payout ratio is now 60%.” Measured against 2026 AFFO per share guidance of $5.87 to $5.93, the forward dividend uses about 58.58% of the midpoint. Net lease-adjusted leverage of 4.8 times is the lowest since the company became a REIT in 2014. The dividend history confirms a fourth consecutive year of increases, with the quarterly payout rising from $0.6185 to $0.864.
Bull case: AFFO per share rose 16% last quarter, and growth businesses now make up 35% of second-quarter revenue. When cash flow grows faster than the dividend, the raises can keep coming without stretching the payout.
Risk: The balance sheet has a lot of debt. Shareholders’ equity is negative at -$955M, and net debt is about $17.3B, so rising interest costs compete with dividend growth for every dollar of AFFO.
Digital Realty: Coverage Keeps Widening on a Frozen Dividend Digital Realty (NYSE:DLR) is a pure-play data center REIT with more than 6,000 customers. It leases everything from single cabinets to entire hyperscale campuses. Its share of backlog gets there its highest level ever at $1.4 billion, and $635 million of annualized rent is scheduled to start in the second half of the year.
Yield: The $4.88 forward dividend on a $177.82 share price yields about 2.74%.
Dividend safety: Measured on Core FFO, coverage is solid. Excluding promote income, Core FFO per share guidance is $8.15 to $8.20, so the dividend uses about 59.69% of the midpoint. Debt to adjusted EBITDA is 4.7 times, and liquidity is about $6 billion. The payout has been $1.22 per share every quarter since the 2022-03-14 ex-dividend date. Before that, it rose steadily from $0.93 to $1.16.
Bull case: Every year the dividend stays flat while Core FFO grows, the buffer under the payout gets larger. The company expects to extend double-digit Core FFO-per-share growth into 2027 and beyond, and the development pipeline is 63% pre-leased.
Risk: Your income isn’t growing. The board is putting cash and stock into expansion, including 12.3 million shares issued in the Blackstone (NYSE:BX | BX Price Prediction) deal, instead of raising the payout.
Equinix: Lowest Yield, Best-Covered Payout Equinix (NASDAQ:EQIX) runs interconnection hubs in 36 countries, where clouds, networks and enterprises plug into each other. It added a record 9,700 net interconnections last quarter. Management said eight of the top 10 model providers and eight of the top 10 neoclouds already run key networking workloads on its platform.
Yield: The forward dividend of $20.64 on a $1,019.39 share price yields about 2.02%. That’s a small yield. Equinix is on this list for dividend growth.
Dividend safety: Management describes the AFFO payout as “in the 50% range”. Against 2026 AFFO per share guidance of $42.69 to $43.29, the forward dividend uses about 48.01% of the midpoint, the best coverage in this group. Net leverage is 3.6 times, liquidity is about $7.7 billion, and the quarterly dividend has gone up every year in the record, from $1.75 to $5.16.
For the bull case, CFO Olivier Leonetti tied the payout directly to cash flow growth: “We expect dividend growth to approximate AFFO per share growth.” The long-term plan calls for AFFO per share growth of 9% to 12% a year through 2029.
On the risk side, capital spending is set to run $5 billion to $7 billion annually through 2029, and management expects leverage to rise by about a turn. That means less free cash flow to speed up dividend growth.
Income From Digital Infrastructure Comes From Coverage All four payouts depend on a small group of very large customers continuing to spend heavily. At Digital Realty, for example, the largest signing in each of the last 10 quarters came from one of six different top hyperscalers. That tenant concentration is a real risk for the whole group. Within those limits, Iron Mountain has the best mix of yield, a verified record of raises and roughly a 60% AFFO payout ratio. American Tower pays the most current income, Equinix has the best-covered payout, and Digital Realty’s improving coverage makes it the dividend raise to watch.
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In the latest trading session, Equinix (EQIX - Free Report) closed at $1,025.72, marking a +1.32% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.
The data center operator's stock has dropped by 2.74% in the past month, exceeding the Finance sector's loss of 4.15% and lagging the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Equinix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2026. The company's upcoming EPS is projected at $10.51, signifying a 6.92% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.57 billion, indicating a 10.95% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $43.45 per share and revenue of $10.27 billion, indicating changes of +13.36% and +11.46%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Equinix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Equinix is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Equinix has a Forward P/E ratio of 23.3 right now. This denotes a premium relative to the industry average Forward P/E of 13.52.
It's also important to note that EQIX currently trades at a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. EQIX's industry had an average PEG ratio of 2.13 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Key Takeaways EQIX sees strong demand for AI infrastructure, with large second-quarter 2026 deals driven by AI workloads.Equinix is expanding capacity with 52 projects across 33 markets and $5-$6 billion in 2026 capital spending.Equinix's ecosystem includes 10,500 customers, 230 cloud on-ramps and 522,000 interconnections. Equinix (EQIX - Free Report) is benefiting from growing demand for hybrid multicloud and AI infrastructure, as enterprises increasingly require distributed, low-latency and sovereign connectivity. Its broad ecosystem, global footprint and expanding capacity position it to capture this ongoing demand.
Analysts seem bullish on this Zacks Rank #2 (Buy) stock. The estimate revision trend for 2026 funds from operations (FFO) per share indicates a favorable outlook for the company, with estimates moving north over the past two months.
Over the past three months, shares of Equinix have gained 1%, against the industry’s decline of 5.9%. Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.
Image Source: Zacks Investment Research
What Makes Equinix a Solid Choice?AI Demand Fuels Growth: Equinix is benefiting from rising demand for distributed AI infrastructure, with most of its largest second-quarter 2026 deals driven by AI workloads. Enterprises are also upgrading legacy infrastructure, supporting sustained demand for Equinix’s low-latency connectivity and data center services. This supports a multi-year demand opportunity rather than exposure to a single technology cycle.
Expanding AI Ecosystem: Equinix’s large customer and interconnection base strengthens its AI ecosystem, with more than 10,500 customers, 230 cloud on-ramps and 522,000 interconnections as of second-quarter 2026. Its partnerships with Cisco, NVIDIA and Presidio, along with sovereignty-focused solutions, could help deepen customer relationships as AI deployments become more distributed and complex.
Expanding Capacity and Nordic Reach: Equinix is expanding capacity to meet strong demand, with 52 major projects underway across 33 markets and more than 7,000 cabinets accelerated into fourth-quarter 2026. The company also raised 2026 capital spending to $5-$6 billion. Its $4 billion acquisition of atNorth further expands its Nordic data center footprint, supporting AI, cloud and HPC demand.
Financial Flexibility: Equinix continues to balance expansion with access to diversified funding sources. As of June 30, 2026, available liquidity was about $7.7 billion, while net leverage was 3.6X annualized adjusted EBITDA. The company had about $22 billion of gross debt, a 3% blended borrowing rate and investment-grade ratings of Baa1/BBB+/BBB+.
Dividend Profile: Equinix has focused on maintaining decent shareholder returns. With fourth-quarter 2025 results, it raised the quarterly dividend by 10% to $5.16 per share, marking the 11th consecutive year of dividend growth. Equinix has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate is 14.26%. Management expects 2026 cash dividends of about $2.039 billion.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Extra Space Storage (EXR - Free Report) and OUTFRONT Media (OUT - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EXR’s 2026 FFO per share is pegged at $8.32, which indicates year-over-year growth of 3.4%.
The consensus estimate for OUT’s 2026 FFO per share has moved 3.6% upward over the past month to $2.32, calling for a rise of 16.6% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced that it will hold its quarterly conference call on Wednesday, October 28, 2026, at 5:30 p.m. ET (2:30 p.m. PT). The company will discuss third-quarter results for the period ended September 30, 2026.
To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode: EQIX. A simultaneous live webcast of the call will be available on the Investor Relations site. A replay of the call will be available one hour after the call through Thursday, December 31, 2026, by dialing 1-800-814-6745 and entering the passcode: 2026. In addition, the webcast will be available on the Investor Relations site (no password required).
About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Data Centers Got the AI Hype—But Office REITs May Get the Rent HikesEquinix NASDAQ: EQIX CFO Olivier Leonetti said the company sees strong demand for its data center and interconnection platform as artificial intelligence workloads increasingly require low-latency connectivity, global reach, neutrality and data sovereignty.
Speaking at an RBC communications infrastructure session, Leonetti said AI inference and so-called agentic AI represent a significant opportunity for Equinix because customers need access to interconnected ecosystems rather than simply compute capacity.
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3 Stocks Built for Higher Rates—And 2 That Could Break“This is our moment,” Leonetti said, citing the company’s global footprint, dense network of participants and interconnection capabilities. He said Equinix recently raised its outlook by three percentage points for both top-line and bottom-line growth and believes “the best is to come.”
AI Demand and Interconnection Leonetti said Equinix reported total sales velocity of about 30% in the second quarter and described demand as strong across enterprises, neocloud providers, cloud providers and large-language-model customers. The company is selectively managing demand, he said, seeking to maintain a diverse customer mix and nurture an ecosystem that supports long-term returns from deployed assets.
3 Ways to Play the Data Center Land GrabHe identified agentic AI as a major driver of future demand. Equinix estimates that agentic AI could account for 50% of AI demand within three years and represent 30% to 40% of data center activity over that period, according to Leonetti.
“We’re just at the start,” he said.
Interconnection demand is also benefiting from customers’ desire to move among AI models and cloud providers, he said. Leonetti said companies come to Equinix for access to an open ecosystem where they can connect with multiple participants rather than solely for compute capacity.
The company recently introduced Fabric One, an offering Leonetti said enables participants to connect with ecosystem partners in seconds, compared with roughly a month previously. While Equinix has not disclosed its pricing model for the product, he said the new offerings should command higher pricing because they provide additional value.
Leonetti also said the growing availability of open-source and open-weight AI models is favorable for Equinix. In his view, open models increase the need for customers to retain choice among providers and models, creating more demand for interconnection and access to a broad ecosystem.
Power Deployment and Supply Chain Equinix has been able to expand capacity despite broader concerns around data center power availability and community resistance to large projects, Leonetti said. He attributed the company’s progress to its comparatively smaller data center footprint, established relationships in local communities and long-standing partnerships with utilities, general contractors and power-management suppliers.
Leonetti said Equinix expects to deploy 40% more power this year than it anticipated at the beginning of the year. In 2026, the company expects to deliver twice the amount of power it delivered in 2025, he said.
He said long-term relationships with contractors and suppliers provide greater certainty around construction starts and equipment availability. Equinix has also placed long-term orders with key partners, according to Leonetti.
In response to a question about AI inference, Leonetti said orchestration activity is expected to occur more frequently in Equinix data centers, where proximity can support latency and economic requirements. He said power deployed per cabinet has risen about 60% recently, while some Equinix facilities have added more powerful racks to support edge-compute workloads.
Global Growth, Portfolio Strategy and Financing Leonetti said demand remains strong across the Americas, EMEA and Asia-Pacific, though the U.S. is currently growing somewhat faster. He attributed the difference to stronger economics and greater access to available space and power in the U.S., rather than weaker demand elsewhere.
Equinix plans to deploy 1 gigawatt of power between now and the end of 2029 and expects to have 2 gigawatts of land and power available after that period, Leonetti said. The company will continue to pursue land-and-power acquisitions opportunistically, he added, referencing its atNorth acquisition as an example.
Beyond physical infrastructure, Equinix is interested in smaller technology tuck-in acquisitions that can complement its interconnection offerings, Leonetti said. He described retail colocation, characterized by smaller footprints, dense ecosystems and higher returns, as the company’s primary focus, while xScale remains part of the portfolio.
On capital allocation, Leonetti said the company prefers debt financing and does not expect to need an equity issuance. He said Equinix has flexibility to delay capital expenditures if market conditions deteriorate and cited its relatively low leverage and ability to manage operating expenses as advantages.
While Leonetti acknowledged the possibility of a broader slowdown, he said the company currently sees no evidence of weakening demand or reduced investment by hyperscalers and neocloud providers. He said spending by those customer groups is 80% higher this year than in the prior year, according to his remarks.
About Equinix (NASDAQ:EQIX)Equinix, Inc is a global digital infrastructure company that operates data centers and provides colocation, interconnection and related services. Its International Business Exchange (IBX) data centers allow businesses, cloud providers, network operators, financial institutions and government organizations to deploy and connect critical information technology infrastructure.
The company's services include space, power and physical security for customer equipment, as well as private connections to cloud and network providers.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Equinix Right Now?Before you consider Equinix, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Equinix wasn't on the list.
While Equinix currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Redwood City, Equinix (EQIX - Free Report) is a Finance stock that has seen a price change of 31.97% so far this year. The data center operator is currently shelling out a dividend of $5.16 per share, with a dividend yield of 2.04%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.3% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $20.64 is up 10% from last year. Over the last 5 years, Equinix has increased its dividend 5 times on a year-over-year basis for an average annual increase of 13.62%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Equinix's current payout ratio is 50%, meaning it paid out 50% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, EQIX expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $43.45 per share, with earnings expected to increase 13.36% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that EQIX is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Ask most investors about office REITs, and you'll hear some variation on a bear case in three parts that started in 2020. Remote work emptied buildings, then rental income cratered, and then valuations collapsed.
Ask about artificial intelligence in real estate, and the answer is data center REITs. Equinix NASDAQ: EQIX is up about 33% this year. Digital Realty Trust NYSE: DLR has gained 16%.
But new leasing data is telling a different story about office REITs. AI firms are expanding at the same time that employers are tightening attendance policies. Both are competing for the same top-tier buildings.
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Supply isn't coming to the rescue. Only 19.7 million square feet of office space is under construction nationwide. That leaves owners of the best buildings with a kind of pricing power they haven't had in years.
This gap between perception and fundamentals opens a window for investors. The market still prices office REITs as a broken sector. The leasing data suggests that the choicest properties in the space are healing.
The Flight to Quality Is Driving Office Rents HigherManhattan is leading the rebound. Startups, AI companies and large employers are chasing the same trophy towers. Office visits rose 6% year over year (YOY) in the first half of 2026. New York, Miami, Dallas, and Atlanta are now close to pre-pandemic levels.
The recovery isn't broad, and that matters. Tenants are paying up for newer space with modern layouts, amenities and transit access. Older commodity buildings are still struggling. Some may end up converted or demolished. The question for investors isn't "office or no office." It's which buildings, in which cities. Here are five REITs that can help investors answer that question.
SL Green Offers a Direct Bet on Manhattan’s Office RecoverySL Green Realty NYSE: SLG owns trophy properties across Manhattan. That puts it at the center of the city's leasing rebound. The company raised its funds from operations (FFO) guidance in July. (FFO is the cash-flow measure REIT investors use instead of earnings.)
SL Green Realty Today
SLG
SL Green Realty
$51.04 +0.16 (+0.31%)
As of 09/25/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$34.77▼
$60.934.84%
$57.43
Second-quarter results backed that up. SL Green posted a loss of 38 cents per share, well ahead of the 59-cent loss analysts expected. Revenue rose 16.5% year over year. The stock is up about 11% in 2026 and pays a dividend that yields roughly 4.9%.
Wall Street isn't convinced yet. The consensus rating is Hold, with a $57.43 price target implying about 13% upside.
Short interest sits near 16.9% of the float. That's a lot of skepticism priced into a landlord with rising guidance.
BXP Stock Could Benefit as Office Fundamentals ImproveBXP NYSE: BXP is the broader way to play the theme. It owns offices in Boston, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C.
BXP Today
$63.40 +1.13 (+1.81%)
As of 09/25/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$49.72▼
$76.374.42%
34.09
$75.06
Here, investor perception and the company's fundamentals look far apart.
BXP beat second-quarter estimates, earning 43 cents per share against a 40 cents per share consensus.
Yet the stock is down about 6% this year. Analysts rate it a Moderate Buy with a $75.06 target, about 19% above the current price.
Income investors get paid to wait. BXP recently held its quarterly dividend at 70 cents per share, a yield of about 4.4%. The stock trades at 9x forward earnings.
Hudson Pacific Has Upside, But the Risks Are HigherHudson Pacific Properties NYSE: HPP has the most dramatic leasing headline. In June, it signed a 502,000-square-foot lease with San Francisco. It was the city's largest office lease since 2018. Analysts project earnings growth of about 24% next year.
Hudson Pacific Properties Today
HPP
Hudson Pacific Properties
$11.65 -0.06 (-0.50%)
As of 09/25/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$5.26▼
$20.06$15.82
But REIT investors need to read the fine print. Hudson Pacific suspended its dividend in September 2024. For an asset class owned mainly for reliable income, that's a major strike. The stock still pays nothing today.
The balance sheet still shows stress. Hudson Pacific posted a second-quarter loss of $1.62 per share, far wider than expected. It completed a 1-for-7 reverse split in December 2025.
The upside case is real. Shares trade at about 0.24 times book value.
The $15.82 consensus target implies roughly 35% upside. Insiders bought $335,000 in stock over the past three months. But this feels more like a recovery trade, not an income holding.
AI Stocks Are Expensive—Office REITs Look Much CheaperNow compare what investors pay for AI exposure. Equinix trades at about 66 times trailing earnings and 27 times forward earnings. It fetches more than 7 times book value. Digital Realty trades at 87 times trailing earnings and 21 times forward.
The office names look like a different asset class and a different opportunity. SL Green, BXP and Hudson Pacific trade between roughly 9 and 11 times forward earnings. SL Green and Hudson Pacific trade below book value. BXP trades at about 1.3 times.
Yield tells the same story. Equinix yields about 2%, and Digital Realty is about 2.7%. SL Green and BXP each pay 4.4% or more.
This doesn't make data centers a bad business. Data-center REITs delivered a 13.75% annualized return over the past decade. But that record is now baked into the price. Investors are paying for a story everyone already knows.
What Investors Should Watch in Office REITsOffice REITs don't need a crowded trade to work; they just need proof. Watch for higher rents on new leases and further FFO guidance increases.
The data-center trade priced in AI years ago. The office trade is only starting to price in the shortage of prime space. That gap may give investors an opportunity. Just be selective. In this recovery, the building matters more than the sector.
Should You Invest $1,000 in SL Green Realty Right Now?Before you consider SL Green Realty, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SL Green Realty wasn't on the list.
While SL Green Realty currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
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Equinix (EQIX - Free Report) closed the most recent trading day at $1,008.08, moving -2.58% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.51% for the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.48%.
The data center operator's stock has dropped by 3.87% in the past month, falling short of the Finance sector's loss of 3.64% and the S&P 500's gain of 0.74%.
The upcoming earnings release of Equinix will be of great interest to investors. The company's upcoming EPS is projected at $10.51, signifying a 6.92% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 10.95% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $43.45 per share and a revenue of $10.27 billion, signifying shifts of +13.36% and +11.46%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Equinix. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Equinix holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Equinix is holding a Forward P/E ratio of 23.81. This indicates a premium in contrast to its industry's Forward P/E of 13.4.
Meanwhile, EQIX's PEG ratio is currently 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.
The REIT and Equity Trust - Retail industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Equinix trades at a discounted 22x AFFO despite robust 10%+ CAGR growth prospects and operational outperformance. EQIX's business model supports durable growth beyond the AI capex cycle, underpinned by a unique interconnection ecosystem and resilient tenant demand. Development risks like NIMBY and power constraints are mitigated by EQIX's land bank, permitting discipline, and focus on established connectivity hubs.
The SGA U.S. LCG Portfolio returned 6.8% (Gross) and 6.0% (Net) in Q2 compared to the Russell 1000 Growth Index return of 16.7% and the S&P 500 Index return of 15.2%. Recent purchases include Equinix and Arista Networks. We liquidated our position in Intuit and Aon.
Equinix (NASDAQ:EQIX) sees enterprise adoption of artificial intelligence accelerating demand for higher-density data center capacity, interconnection services and latency-sensitive infrastructure, executives said during a Barclays conference discussion.
Arquelle Shaw, Equinix’s President of the Americas, said she oversees growth strategy across the region from Canada through Chile and Argentina, including corporate development, business development and growth from investments. Shaw previously spent about six years as the company’s senior vice president of sales for the Americas.
Shaw said Equinix has evolved its go-to-market model to serve customer segments differently, ranging from small businesses served through channel partners to large global enterprises supported by dedicated teams. The company has “almost 11,000 customers,” she said, distinguishing its customer base from that of other data center operators. AI is raising capacity and density requirements Enterprise customers have been increasing the size of their capacity requirements and deploying workloads that consume more power, Shaw said. She described a shift from 250 kVA deals once being considered large to megawatt-scale deployments becoming more common.
While AI-focused companies and hyperscalers moved quickly to adopt the technology, Shaw said enterprises were initially more cautious. In prior discussions, many enterprise customers were still considering an AI strategy or dealing with “Shadow AI” usage within their organizations. This year, she said, those same customers have been more heavily engaged in developing and implementing AI strategies.
“We’re quite bullish on what we’re seeing in terms of the future,” Shaw said, adding that Equinix is considering how to expand responsibly to keep pace with demand.
AI is also increasing the importance of low-latency connectivity, according to Shaw. Not all AI workloads have the same latency requirements, she said, but applications requiring immediate responses are becoming more prevalent. Equinix designs its metro campuses to place workloads according to their latency needs, including in different International Business Exchange, or IBX, facilities.
Interconnection demand and new AI products Shaw said AI is making enterprise networking more complex because data, computing resources and AI models can reside in multiple locations. That dynamic requires more connections and greater flexibility than traditional point-to-point networking arrangements.
Equinix’s interconnection business grew 9% this year, Shaw said. She described the service as increasingly essential for customers that need to retrieve and move data among cloud platforms, models, computing infrastructure and end users.
The company recently introduced Fabric One and Inference Exchange. Shaw characterized Fabric One as a connectivity offering designed to simplify how customers connect across locations, including situations involving data sovereignty requirements. She described Inference Exchange as helping customers more easily use data needed to support their businesses.
Equinix has a longstanding relationship with NVIDIA, Shaw said, and its work with NVIDIA and Together AI has expanded from facilitating infrastructure access to helping customers use inference capabilities and data across different locations.
Ryan Burke, Equinix’s vice president of investor relations, said data sovereignty is built into the company’s network layer, which he said can reduce complexity compared with managing sovereignty requirements on an application-by-application basis.
Shaw said Equinix has more than 522,000 interconnections globally and cited its ecosystem density as a competitive advantage. The company’s facilities bring together cloud providers, network service providers, customers and other participants, creating what she called “magnetism” for additional business.
Development, cooling and xScale Equinix is adapting new data center designs for higher-density AI workloads. Shaw pointed to the company’s announced DA12 facility, which she said is expected to deliver about 67 megawatts and densities of roughly 18 kVA per cabinet.
The company is considering environmental impacts, including cooling and water use, as it develops higher-density facilities, she said. Equinix is generally building optionality for liquid cooling into newer properties rather than broadly retrofitting older buildings.
Burke said Equinix already has liquid cooling in more than 100 properties. He said equipment can be deployed within a customer cage and later removed and used elsewhere when customer needs change.
Regarding its xScale offering, Shaw said Equinix does not build gigawatt-scale data centers for AI training. Instead, xScale is intended to bring cloud providers closer to the company’s dense metro ecosystems, allowing clouds to connect with enterprise customers and allowing customers to connect with clouds. Shaw said the Hampton and Minooka projects are currently on track, without providing further expansion details.
Returns and long-term outlook Executives said community opposition to data center development has become a meaningful industry consideration. Shaw said Equinix works with community leaders before acquiring land or expanding and seeks to address concerns about power costs, grid investment, workforce development and community impacts. She said the company has not experienced the development delays seen elsewhere, though it remains sensitive to the issue.
Burke said Equinix expects to continue generating mid-20% cash yields on development projects, supported by its approach to curating the mix of customer types and workloads within each facility. He said properties generally take two to three years to lease up to Equinix’s level of stabilization.
The company’s long-term outlook calls for 9% to 12% annual adjusted funds from operations per-share growth through 2029. Burke said the company’s previous high end of its outlook is now the low end of its updated range, reflecting demand strength and execution. He cited improving same-store revenue growth, capacity expansion and diversified demand across customers, workloads, products and services.
Shaw added that no single customer represents more than about 2.5% of Equinix’s portfolio, a diversification factor she said can limit the impact of shifts in a particular customer type or product category.
About Equinix (NASDAQ:EQIX) Equinix, Inc is a global digital infrastructure company that operates data centers and provides interconnection and cloud connectivity services. Its facilities, known as International Business Exchange (IBX) data centers, enable businesses, cloud providers, network operators, financial institutions and other organizations to securely house technology infrastructure and exchange data.
The company’s Platform Equinix services include colocation, private and public cloud connectivity, network interconnection, managed infrastructure and digital services.
3 Stocks Built for Higher Rates—And 2 That Could BreakEquinix NASDAQ: EQIX sees enterprise adoption of artificial intelligence accelerating demand for higher-density data center capacity, interconnection services and latency-sensitive infrastructure, executives said during a Barclays conference discussion.
Arquelle Shaw, Equinix’s President of the Americas, said she oversees growth strategy across the region from Canada through Chile and Argentina, including corporate development, business development and growth from investments. Shaw previously spent about six years as the company’s senior vice president of sales for the Americas.
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3 Ways to Play the Data Center Land GrabShaw said Equinix has evolved its go-to-market model to serve customer segments differently, ranging from small businesses served through channel partners to large global enterprises supported by dedicated teams. The company has “almost 11,000 customers,” she said, distinguishing its customer base from that of other data center operators.
AI is raising capacity and density requirements Enterprise customers have been increasing the size of their capacity requirements and deploying workloads that consume more power, Shaw said. She described a shift from 250 kVA deals once being considered large to megawatt-scale deployments becoming more common.
3 REITs to Watch as AI Data Center Spending Surpasses Office ConstructionWhile AI-focused companies and hyperscalers moved quickly to adopt the technology, Shaw said enterprises were initially more cautious. In prior discussions, many enterprise customers were still considering an AI strategy or dealing with “Shadow AI” usage within their organizations. This year, she said, those same customers have been more heavily engaged in developing and implementing AI strategies.
“We’re quite bullish on what we’re seeing in terms of the future,” Shaw said, adding that Equinix is considering how to expand responsibly to keep pace with demand.
AI is also increasing the importance of low-latency connectivity, according to Shaw. Not all AI workloads have the same latency requirements, she said, but applications requiring immediate responses are becoming more prevalent. Equinix designs its metro campuses to place workloads according to their latency needs, including in different International Business Exchange, or IBX, facilities.
Interconnection demand and new AI products Shaw said AI is making enterprise networking more complex because data, computing resources and AI models can reside in multiple locations. That dynamic requires more connections and greater flexibility than traditional point-to-point networking arrangements.
Equinix’s interconnection business grew 9% this year, Shaw said. She described the service as increasingly essential for customers that need to retrieve and move data among cloud platforms, models, computing infrastructure and end users.
The company recently introduced Fabric One and Inference Exchange. Shaw characterized Fabric One as a connectivity offering designed to simplify how customers connect across locations, including situations involving data sovereignty requirements. She described Inference Exchange as helping customers more easily use data needed to support their businesses.
Equinix has a longstanding relationship with NVIDIA, Shaw said, and its work with NVIDIA and Together AI has expanded from facilitating infrastructure access to helping customers use inference capabilities and data across different locations.
Ryan Burke, Equinix’s vice president of investor relations, said data sovereignty is built into the company’s network layer, which he said can reduce complexity compared with managing sovereignty requirements on an application-by-application basis.
Shaw said Equinix has more than 522,000 interconnections globally and cited its ecosystem density as a competitive advantage. The company’s facilities bring together cloud providers, network service providers, customers and other participants, creating what she called “magnetism” for additional business.
Development, cooling and xScale Equinix is adapting new data center designs for higher-density AI workloads. Shaw pointed to the company’s announced DA12 facility, which she said is expected to deliver about 67 megawatts and densities of roughly 18 kVA per cabinet.
The company is considering environmental impacts, including cooling and water use, as it develops higher-density facilities, she said. Equinix is generally building optionality for liquid cooling into newer properties rather than broadly retrofitting older buildings.
Burke said Equinix already has liquid cooling in more than 100 properties. He said equipment can be deployed within a customer cage and later removed and used elsewhere when customer needs change.
Regarding its xScale offering, Shaw said Equinix does not build gigawatt-scale data centers for AI training. Instead, xScale is intended to bring cloud providers closer to the company’s dense metro ecosystems, allowing clouds to connect with enterprise customers and allowing customers to connect with clouds. Shaw said the Hampton and Minooka projects are currently on track, without providing further expansion details.
Returns and long-term outlook Executives said community opposition to data center development has become a meaningful industry consideration. Shaw said Equinix works with community leaders before acquiring land or expanding and seeks to address concerns about power costs, grid investment, workforce development and community impacts. She said the company has not experienced the development delays seen elsewhere, though it remains sensitive to the issue.
Burke said Equinix expects to continue generating mid-20% cash yields on development projects, supported by its approach to curating the mix of customer types and workloads within each facility. He said properties generally take two to three years to lease up to Equinix’s level of stabilization.
The company’s long-term outlook calls for 9% to 12% annual adjusted funds from operations per-share growth through 2029. Burke said the company’s previous high end of its outlook is now the low end of its updated range, reflecting demand strength and execution. He cited improving same-store revenue growth, capacity expansion and diversified demand across customers, workloads, products and services.
Shaw added that no single customer represents more than about 2.5% of Equinix’s portfolio, a diversification factor she said can limit the impact of shifts in a particular customer type or product category.
About Equinix (NASDAQ:EQIX)Equinix, Inc is a global digital infrastructure company that operates data centers and provides interconnection and cloud connectivity services. Its facilities, known as International Business Exchange (IBX) data centers, enable businesses, cloud providers, network operators, financial institutions and other organizations to securely house technology infrastructure and exchange data.
The company's Platform Equinix services include colocation, private and public cloud connectivity, network interconnection, managed infrastructure and digital services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Nykredit A S bought a new position in Equinix, Inc. (NASDAQ:EQIX – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 39,658 shares of the financial services provider’s stock, valued at approximately $41,339,000.
Several other hedge funds and other institutional investors have also recently made changes to their positions in EQIX. BlackRock Inc. purchased a new stake in Equinix during the second quarter valued at approximately $11,930,074,000. Norges Bank purchased a new position in Equinix during the fourth quarter valued at approximately $984,355,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Equinix by 26,831.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,239,122 shares of the financial services provider’s stock worth $1,291,648,000 after purchasing an additional 1,234,521 shares during the period. Legal & General Group Plc bought a new position in shares of Equinix in the second quarter worth approximately $1,181,260,000. Finally, Canada Pension Plan Investment Board purchased a new stake in shares of Equinix in the second quarter worth $1,163,662,000. Hedge funds and other institutional investors own 94.94% of the company’s stock.
Equinix Stock Down 0.4% NASDAQ EQIX opened at $1,021.34 on Friday. The stock has a 50 day moving average price of $1,043.53 and a 200-day moving average price of $1,041.54. Equinix, Inc. has a one year low of $720.62 and a one year high of $1,128.68. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.13 and a current ratio of 1.13. The company has a market capitalization of $100.78 billion, a P/E ratio of 65.77, a P/E/G ratio of 1.47 and a beta of 0.99.
Equinix (NASDAQ:EQIX – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $11.78 earnings per share for the quarter, topping the consensus estimate of $4.73 by $7.05. Equinix had a net margin of 15.64% and a return on equity of 10.76%. The company had revenue of $2.62 billion for the quarter, compared to analysts’ expectations of $2.59 billion. During the same quarter in the previous year, the business posted $9.91 earnings per share. Equinix’s quarterly revenue was up 16.4% on a year-over-year basis. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. As a group, equities analysts predict that Equinix, Inc. will post 38.23 EPS for the current fiscal year. Equinix Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th were given a dividend of $5.16 per share. This represents a $20.64 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Wednesday, August 19th. Equinix’s dividend payout ratio is currently 132.90%.
Insider Activity at Equinix In other Equinix news, Director Christopher B. Paisley sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $1,019.28, for a total transaction of $4,077,120.00. Following the sale, the director directly owned 13,859 shares in the company, valued at $14,126,201.52. This represents a 22.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Michael Paladin sold 307 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $1,035.01, for a total value of $317,748.07. Following the completion of the sale, the insider directly owned 2,450 shares of the company’s stock, valued at $2,535,774.50. The trade was a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 4,770 shares of company stock valued at $4,884,197. Insiders own 0.27% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts recently weighed in on the stock. BTIG Research lifted their target price on shares of Equinix from $1,210.00 to $1,240.00 and gave the company a “buy” rating in a research note on Thursday, September 10th. Scotiabank reissued a “sector perform” rating and issued a $1,208.00 price target on shares of Equinix in a report on Thursday, July 30th. UBS Group upped their price target on Equinix from $1,210.00 to $1,265.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Citigroup reaffirmed a “market outperform” rating on shares of Equinix in a report on Tuesday, August 4th. Finally, Stifel Nicolaus lifted their price objective on shares of Equinix from $1,250.00 to $1,265.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Equinix has an average rating of “Moderate Buy” and an average price target of $1,204.80.
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About Equinix (Free Report)
Equinix, Inc is a global digital infrastructure company that operates data centers and provides interconnection and cloud connectivity services. Its facilities, known as International Business Exchange (IBX) data centers, enable businesses, cloud providers, network operators, financial institutions and other organizations to securely house technology infrastructure and exchange data.
The company’s Platform Equinix services include colocation, private and public cloud connectivity, network interconnection, managed infrastructure and digital services.
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3 Stocks Built for Higher Rates—And 2 That Could BreakEquinix NASDAQ: EQIX executives said the company is expanding its development pipeline in response to customer demand, with planned annual investment of $5 billion to $7 billion expected to be concentrated in established markets where it already operates interconnected digital ecosystems.
Speaking at a Bank of America REIT conference, Stu Thompson, Equinix’s senior vice president of global real estate, said the company has accelerated certain build phases and expanded its powered-land portfolio to support demand. He said most planned capital deployment would go toward core markets where Equinix has existing operations and visibility into customer requirements.
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3 Ways to Play the Data Center Land Grab“We’re just a very customer-centric organization,” Thompson said. “All of that is really because of the demand signals.”
Thompson said Equinix’s base of roughly 11,000 customers and 500,000 cross-connects provides the company with insight into digital-transformation and artificial-intelligence demand. Arquelle Shaw, president of the Americas, said the company does not build in markets speculatively without customer demand.
3 REITs to Watch as AI Data Center Spending Surpasses Office Construction“We invest and build where the customers are, where we know we have market opportunity,” Shaw said. She added that large enterprises are continuing to move toward hybrid and multicloud infrastructure while increasingly preparing their operations for AI adoption.
Power, Community Engagement and Development Execution Executives acknowledged investor concerns around labor, power availability and political resistance to data-center construction. Thompson said the company’s longstanding local presence and engagement with public officials, utilities and communities are central to its development approach.
Before construction begins, Equinix works with local authorities, community stakeholders and power providers, Thompson said. He added that his responsibilities have increasingly included public-policy strategy as data centers receive greater public and political attention.
“The industry as a whole really needs to do a better job of telling the story,” Thompson said, citing what he described as misinformation alongside legitimate community concerns.
On power, Thompson said Equinix owns and controls approximately 3 gigawatts of designed power. Roughly 600 megawatts to 700 megawatts of that capacity is currently under development, ranging from site work to vertical construction. The company expects to have about 1 gigawatt under production by the beginning of next year, he said, while expressing confidence in its visibility into power and permits for the remaining capacity.
Thompson said Equinix does not announce projects before it controls the necessary capacity, distinguishing its approach from what he termed “bragawatts.”
Returns, Portfolio Growth and AI Demand Equinix is underwriting new development to cash-on-cash returns above 20%, Thompson said, describing the company’s target as being in the low 20% range. He said the typical period for an asset to stabilize is two to three years.
Ryan Burke, Equinix’s vice president of investor relations, said planned capacity additions over the next three to four years could roughly equal the capacity the company delivered during the prior 27 years. He said the company is managing its business for the medium to long term and that its development returns provide support amid interest-rate pressure.
Executives said maintenance capital expenditures remain low relative to revenue, with Burke describing them as a low-single-digit percentage of revenue. Thompson said customers are responsible for updating their own IT equipment, while Equinix provides space, power, security and interconnection. He also said the company can redevelop owned properties to raise real-estate yields.
On AI, Shaw said enterprise adoption has accelerated markedly over the past year. At a customer advisory board meeting more than a year ago, she said, most participating large financial-services and Fortune 500 customers had not yet begun their AI journeys. A year later, each customer had begun implementation, though at different stages.
Shaw said the majority of Equinix’s business remains unrelated to AI today, but customers are increasingly building digital infrastructure that can accommodate AI workloads and inference. Thompson said neocloud customers are an important part of the AI ecosystem, though the segment currently represents about 1.5% of Equinix revenue.
Executives expect AI inference to increase demand for cross-connects as enterprise data must move among clouds, networks and end users. Shaw said Equinix has more than 522,000 interconnections globally and views interconnection as a potentially important future growth driver.
Pricing, Pre-Sales and Customer Mix Thompson said Equinix continues to see opportunities for improved pricing, though Shaw said the company has not yet seen a broad shift in customer contract terms. She noted that terms differ depending on customer size, complexity and strategic importance.
About 30% of cabinets were pre-sold in the prior quarter, according to the conference discussion. Executives said pre-selling helps Equinix refine its view of demand but that the company does not intend to fill an entire facility with only a few large customers.
Shaw said Equinix builds customer mix into each facility’s business case, balancing small, medium and large customer deployments to support targeted returns and ecosystem value. In some cases, she said, the company may direct customers to other locations if a particular facility needs a different mix of tenants and partners.
Equinix is also adapting facilities for higher-density deployments. Thompson said one of the company’s newest U.S. builds supports an average of up to 18 kilowatts per cabinet, compared with roughly three kilowatts per cabinet when he joined the company. New facilities are being prepared for liquid and chip cooling, and some sites retain room for additional generators, he said.
Shaw also outlined changes to Equinix’s go-to-market strategy, including greater customer segmentation and vertical specialization. The company is seeking to align sales, technical, marketing and product teams more closely around industries such as financial services, while making customer service more proactive and using customer relationships to support renewals, upselling and churn reduction.
About Equinix (NASDAQ:EQIX)Equinix, Inc is a global digital infrastructure company that operates data centers and provides interconnection and cloud connectivity services. Its facilities, known as International Business Exchange (IBX) data centers, enable businesses, cloud providers, network operators, financial institutions and other organizations to securely house technology infrastructure and exchange data.
The company's Platform Equinix services include colocation, private and public cloud connectivity, network interconnection, managed infrastructure and digital services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Equinix Right Now?Before you consider Equinix, you'll want to hear this.
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Equinix (EQIX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Equinix currently has an average brokerage recommendation (ABR) of 1.47, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 35 brokerage firms. An ABR of 1.47 approximates between Strong Buy and Buy.
Of the 35 recommendations that derive the current ABR, 25 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 71.4% and 8.6% of all recommendations.
Brokerage Recommendation Trends for EQIX
Check price target & stock forecast for Equinix here>>>
The ABR suggests buying Equinix, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is EQIX a Good Investment?In terms of earnings estimate revisions for Equinix, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $43.45.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Equinix. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Equinix.
Corient Private Wealth LP boosted its stake in shares of Equinix, Inc. (NASDAQ:EQIX – Free Report) by 20.9% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 12,597 shares of the financial services provider’s stock after acquiring an additional 2,181 shares during the quarter. Corient Private Wealth LP’s holdings in Equinix were worth $13,132,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Equinix during the 2nd quarter valued at approximately $11,930,074,000. Cohen & Steers Inc. boosted its stake in Equinix by 23.3% during the fourth quarter. Cohen & Steers Inc. now owns 2,609,011 shares of the financial services provider’s stock worth $1,998,978,000 after buying an additional 493,141 shares during the period. Geode Capital Management LLC boosted its stake in Equinix by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 2,567,830 shares of the financial services provider’s stock worth $1,959,731,000 after buying an additional 25,383 shares during the period. Principal Financial Group Inc. increased its position in Equinix by 1.4% during the first quarter. Principal Financial Group Inc. now owns 1,980,497 shares of the financial services provider’s stock valued at $1,941,377,000 after acquiring an additional 27,643 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Equinix by 26,831.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,239,122 shares of the financial services provider’s stock valued at $1,291,648,000 after acquiring an additional 1,234,521 shares during the period. 94.94% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes EQIX has been the subject of a number of recent analyst reports. Cantor Fitzgerald lifted their price target on shares of Equinix from $1,186.00 to $1,211.00 and gave the stock an “overweight” rating in a research note on Thursday, July 30th. Jefferies Financial Group reissued a “buy” rating and issued a $1,340.00 price objective on shares of Equinix in a research report on Thursday, July 30th. Royal Bank Of Canada raised their price objective on shares of Equinix from $1,125.00 to $1,225.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 5th. Weiss Ratings raised Equinix from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 6th. Finally, Guggenheim reiterated a “buy” rating and issued a $1,235.00 price target on shares of Equinix in a report on Wednesday, May 20th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,204.80.
Check Out Our Latest Stock Report on EQIX Key Headlines Impacting Equinix Here are the key news stories impacting Equinix this week:
Positive Sentiment: Equinix’s expansion of its multi-cloud and AI connectivity platform reinforces its positioning as enterprises and hyperscalers increase spending on data-center infrastructure. The strategy could support long-term revenue growth and higher utilization across its global facilities. How Investors May Respond To Equinix Expanding Its Multi-Cloud And AI Connectivity Platform Positive Sentiment: Equinix linked Comcast to its Equinix Fabric platform, expanding customers’ access to network services and potentially increasing connectivity demand. The article also argues the stock may trade below estimated fair value, which could attract value-oriented investors despite its premium valuation. Equinix Links Comcast To Its Fabric Positive Sentiment: Restrictions on new data-center development in Texas and near Cape Town could constrain industry supply. While permitting and power shortages create execution risks, they may benefit established operators such as Equinix by making existing, powered capacity more valuable. Texas and Cape Town Are Tightening the Data-Center Gate Neutral Sentiment: Recent presentations at the BofA and Barclays conferences keep management’s strategy, growth priorities and industry outlook in focus. However, the transcript headlines do not indicate a new earnings release or a change to guidance. BofA NY Global Real Estate Conference Transcript Negative Sentiment: Analyst opinions remain mixed, suggesting that optimism about AI-driven growth is offset by concerns over Equinix’s already elevated valuation and the pace at which investments translate into shareholder returns. Analysts’ Opinions Are Mixed on These Real Estate Stocks Equinix Stock Performance Shares of NASDAQ:EQIX opened at $1,006.98 on Wednesday. The firm has a market cap of $99.36 billion, a PE ratio of 64.84, a price-to-earnings-growth ratio of 1.43 and a beta of 0.99. The firm’s 50 day simple moving average is $1,044.31 and its 200-day simple moving average is $1,040.84. Equinix, Inc. has a one year low of $720.62 and a one year high of $1,128.68. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.13 and a current ratio of 1.13.
Equinix (NASDAQ:EQIX – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $11.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.73 by $7.05. Equinix had a return on equity of 10.76% and a net margin of 15.64%.The firm had revenue of $2.62 billion during the quarter, compared to analyst estimates of $2.59 billion. During the same quarter in the previous year, the business earned $9.91 earnings per share. Equinix’s quarterly revenue was up 16.4% on a year-over-year basis. Equinix has set its FY 2026 guidance at 42.690-43.290 EPS. As a group, equities analysts predict that Equinix, Inc. will post 38.23 EPS for the current year.
Equinix Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be given a dividend of $5.16 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $20.64 dividend on an annualized basis and a dividend yield of 2.0%. Equinix’s dividend payout ratio is presently 132.90%.
Insider Transactions at Equinix In related news, insider Michael Paladin sold 307 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $1,035.01, for a total value of $317,748.07. Following the completion of the sale, the insider directly owned 2,450 shares of the company’s stock, valued at $2,535,774.50. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Christopher B. Paisley sold 4,000 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $1,019.28, for a total transaction of $4,077,120.00. Following the transaction, the director owned 13,859 shares in the company, valued at approximately $14,126,201.52. The trade was a 22.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 4,770 shares of company stock valued at $4,884,197. 0.27% of the stock is currently owned by corporate insiders.
About Equinix (Free Report)
Equinix, Inc is a global digital infrastructure company that operates data centers and provides interconnection and cloud connectivity services. Its facilities, known as International Business Exchange (IBX) data centers, enable businesses, cloud providers, network operators, financial institutions and other organizations to securely house technology infrastructure and exchange data.
The company’s Platform Equinix services include colocation, private and public cloud connectivity, network interconnection, managed infrastructure and digital services.
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Equinix, Inc. (EQIX) BofA NY Global Real Estate Conference 2026 September 15, 2026 3:00 PM EDT
Company Participants
Stuart Thompson
Arquelle Shaw
Conference Call Participants
Michael Funk - BofA Securities, Research Division
Presentation
Michael Funk
BofA Securities, Research Division
Happy once again to be part of the REIT conference. It's funny. I popped in the presentation this morning with Kenneth Caplan from Blackstone and seeing the entire conversation with data center development. And I joked with some investors earlier that a year ago, nobody wanted to talk data centers. And now, it seems he's taken over the entire conference, and really happy to have Equinix here with us again this year, who, as you know, one of the earliest, most established developers in data centers.
So thank you both for being here. So we have Stu, who is the SVP of Global Real Estate, and then his colleague as well, who heads up the Americas, and they both have like quick intros.
Stuart Thompson
Stuart Thompson, I've been at Equinix for 15 years, mostly in real estate and corporate development roles. Before Global Real Estate, I ran our corporate development team in EMEA and before that, in the Americas.
Arquelle Shaw
Great. I'm Arquelle Shaw, I'm the President of the Americas. And prior to that, I was responsible for running Americas sales for the last 6 years.
Stuart Thompson
About 7 years, right?
Arquelle Shaw
7 years in total, yes.
Question-and-Answer Session
Michael Funk
BofA Securities, Research Division
That's great. Thank you both. So I mentioned the heightened investor interest earlier. And Equinix recently reported they expect to invest what $5 billion to $7 billion annually from '27 through '29, excluding M&A. So you've expanded your development portfolio budget significantly. And so I'm curious to know from your perspective, what changed within Equinix to support that level of higher development activity? And
Key Takeaways REITs are benefiting from AI-driven demand for data centers, healthcare facilities and other infrastructure.EQIX and WELL have posted strong YTD gains as AI boosts demand for real estate assets.ETFs like REZ offer diversified REIT exposure, with each ETF posting double-digit YTD gains. Real Estate Investment Trusts (REITs) that own, operate, or finance income-generating real estate across various property types — from data centers to warehouses to self-storage facilities- have been performing remarkably well of late. The Dow Jones U.S. Select REIT Index has gained approximately 12.3% year to date, outperforming the Dow Jones Industrial Average, which has returned 8.7% over the same period.
By extension, exchange-traded funds (ETFs) holding these real estate assets have also experienced a notable resurgence in recent times, offering investors a combination of steady dividend yields and capital appreciation. This outperformance stems largely from one powerful catalyst — artificial intelligence (AI).
To understand how AI is quietly transforming REITs, one must analyze how industry-wide digital growth is enabling physical infrastructure expansion and, on that front, why ETFs offer a prudent way to capture this trend — revealing an often-overlooked corner of the AI investment landscape.
The AI-REIT ConnectionThe most direct link between AI and REITs runs through data centers. While chipmakers and software providers dominate public AI narratives, the underlying AI ecosystem requires massive physical footprint expansions — ranging from specialized server facilities to logistics hubs and healthcare facilities.
That’s where data center REITs come in — they are essentially landlords that build, own and lease space to tenants including Amazon, Apple, Oracle and Nvidia.
For instance, Equinix (EQIX - Free Report) , the world’s largest data center REIT, has gained 36.4% year to date, outperforming megacap technology stocks and boosting its market capitalization to $100 billion (as cited in CNBC). The company has been capitalizing on the AI boom by carving out a specialized niche in enterprise AI inference and distributed data center infrastructure.
The company has recently inked a deal with Nvidia that gives customers a flexible way to run their AI models on open-source cloud platform Together AI.
Then there’s Digital Realty Trust (DLR - Free Report) , which owns more than 300 data centers across 30-plus countries. The stock is up over 22% so far this year and carries a $16.5 billion active development pipeline representing a 60% year-on-year increase heavily fueled by the accelerating global demand for AI-ready infrastructure, hyperscale clouds and enterprise data management. It recently acquired interests in three hyperscale data centers in Northern Virginia, the nation’s largest data center market.
There’s also Welltower (WELL - Free Report) , a healthcare REIT, with year-to-date return of 27%, has been leveraging AI in its business systems to improve its operations significantly. As AI-driven medical advances enable the early detection of diseases in the aging population, timely treatment can extend lives. As more people live longer, demand for senior housing is likely to increase, thereby supporting growth in stocks such as WELL.
REIT ETFs: The Unsung Beneficiaries of AIDespite this fundamental tailwind, real estate is often overlooked as a primary AI play.
Most investors focus on chipmakers like Nvidia or cloud providers like Microsoft, but data center REITs capture AI infrastructure demand through long-term leases with locked-in rental escalations.
According to data from the National Association of Real Estate Investment Trusts (Nareit), data center REITs account for approximately 13% of the total U.S. REIT market capitalization, which sits around $1.5 trillion.
Meanwhile, a counterintuitive tailwind is also emerging: community pushback against data center construction. A recent NBC News poll found that 69% of respondents oppose AI data centers in their area. But for existing data center REITs, this is actually positive — restricting new supply makes current capacity more valuable and gives landlords greater pricing power.
In this environment, REIT ETFs offer diversified exposure to this trend without the concentration risk of betting on a single data center operator. They also provide dividend income — typically yielding 2% to 3% — while participating in AI-driven growth.
REIT ETFs Worth WatchingConsidering the aforementioned discussion, investors may want to keep the following REIT ETFs on their watchlist:
iShares Residential and Multisector Real Estate ETF (REZ - Free Report)
This fund, with net assets worth $824.5million, offers exposure to U.S. residential, healthcare, and self-storage real estate equities. WELL holds the first spot in this fund, with 25.3% weightage.
REZ has rallied 11.4% year to date and charges 48 basis points (bps) in fees.
First Trust S&P REIT ETF (FRI - Free Report)
This fund, with net assets worth $194.9 million, seeks investment results corresponding to the price and yield of the S&P United States REIT Index. WELL holds the first spot in this fund with 12.6% weightage, while DLR holds the third spot with 4.59% weightage. EQIX holds the fourth position in this fund with 4.59% weightage.
FRI has risen 13% year to date and charges 50 bps in fees.
iShares Core U.S. REIT ETF (USRT - Free Report)
This fund, with net assets worth $4.44 billion, provides exposure to U.S. real estate equities. WELL holds the first spot in this fund with 9.2% weightage, while EQIX holds the third spot with 6.30% weightage. DLR holds the fourth position in this fund with 4.43% weightage.
USRT has gained 13.2% year to date and charges 8 bps in fees.
New Innovation Lab program lets platform partners, such as Equinix, enable enterprises to order Comcast Business last-mile connectivity through standards-based APIs, aiming to cut delivery from weeks to days
KEY TAKEAWAYS:
New Comcast Business Innovation Lab program will let enterprises order Comcast Business last-mile connectivity through standards-based APIs within Equinix FabricComcast Business delivers the integration through its digital orchestration platform using APIs aligned with the Mplify Lifecycle Service Orchestration frameworkInitial phase covers last-mile Ethernet to eligible locations, with goal of cutting delivery from weeks to days, and is designed to extend to optical wavelengths, cloud connectivity, and cybersecurity PHILADELPHIA--(BUSINESS WIRE)--Comcast Business today announced a collaboration with Equinix, the world’s digital infrastructure company®, that will allow enterprises to order Comcast Business last-mile connectivity through standards-based APIs directly within Equinix Fabric®, Equinix’s software-defined interconnection service that enables customers to digitally connect their distributed infrastructure.
The collaboration builds on the Innovation Lab’s work with Colt Technology Services, announced earlier this quarter, to advance cross-carrier API interoperability and simplify how network services are delivered across providers. Both programs support Comcast Business’s strategy to make enterprise connectivity easier to discover, order, and deploy through software and partner ecosystems.
Comcast Business already connects customers to more than 700 data centers nationwide, and offers data center solutions including cross connects, cloud on-ramps, and data center interconnect. Today, enterprises can deploy cloud infrastructure, AI platforms, and applications in minutes through software. Yet, across much of the industry, the last-mile connection that links those facilities to offices, campuses, stores, and users is one of the last pieces still ordered by hand.
Companies moving workloads into colocation feel that friction the most, with compute and applications ready in minutes while they wait weeks for the connection that reaches the people who use it.
“For decades, connectivity has been essential to enterprise transformation, but the way it is ordered and delivered has not evolved as quickly as the infrastructure it supports,” said Bob Victor, Chief Product Officer, Comcast Business. “Cloud, AI, and colocation environments can be provisioned through software. The network needs to move closer to that same model. We’re already inside these data centers, and now enterprises can order that connection in software.”
“Enterprises are building globally distributed digital infrastructure to support cloud and AI workloads, but the networks connecting those environments have not always kept pace,” said Karthik Ramaswamy, Senior Vice President of Interconnection Products and Services, Equinix. “With Comcast Business last-mile connectivity integrated into Equinix Fabric, customers will be able to extend their Fabric network to more enterprise locations through the same digital experience they already use to connect their distributed infrastructure. Standards-based APIs help us make that experience simpler and more automated as customers connect increasingly distributed, multicloud, and AI environments.”
Equinix Fabric is available in more than 240 data centers across 66 markets, offering enterprises a neutral foundation for connecting distributed infrastructure to each other and to the cloud. That reach is critical as AI workloads push computing out of centralized environments and into more locations. The collaboration with Comcast Business extends the Fabric experience to the last mile, giving customers a simpler way to connect offices, campuses, and other enterprise locations to the infrastructure they already reach through Fabric.
Qualified partners will be able to check whether Comcast Business serves a location, get pricing, and place an order digitally, enabling those capabilities to be surfaced through experiences such as Equinix Fabric. Comcast Business delivers that through its digital orchestration platform, using industry-standard APIs aligned with the Mplify (formerly MEF) Lifecycle Service Orchestration framework. The interface follows an industry standard rather than a proprietary Comcast Business specification, so partners integrate once and reach the network through methods they already use elsewhere.
In the initial phase, Equinix Fabric customers will be able to digitally order Comcast Business last-mile Ethernet connectivity to eligible locations, while Comcast Business provisions the connection, with the goal of cutting delivery time from weeks to days. The companies will validate the approach with enterprise customers in live environments during this phase. Over time, the program is designed to extend to optical wavelengths, cloud connectivity, and cybersecurity.
Launched in April 2026, the Comcast Business Innovation Lab develops next-generation solutions in structured partnership with customers and leading technology providers, with defined milestones and a clear path from pilot to commercial scale. The Lab introduces new programs on a regular basis, driven by emerging enterprise priorities and direct customer input.
Enterprises and partners interested in participating can contact the team at: [email protected]
About Comcast Business
Comcast Business offers leading global businesses the technology solutions and forward-thinking partnership they need. With a full suite of solutions including fast, reliable connectivity, secure networking solutions and advanced cybersecurity and a range of managed service options, Comcast Business is ready to meet the needs of businesses of all sizes. Comcast Business has been recognized by leading analyst firms for its continued growth, innovation, and leadership, and is committed to partnering with customers to help them drive their businesses forward.
For more information, call 800-501-6000. Follow @ComcastBusiness social media networks at http://business.comcast.com/social.
About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company. From the connectivity and platforms we provide, to the content and experiences we create, our businesses reach hundreds of millions of customers, viewers, and guests worldwide. We deliver world-class broadband, wireless, and video through Xfinity, Comcast Business, and Sky; produce, distribute, and stream leading entertainment, sports, and news through brands including NBC, Telemundo, Universal, Peacock, and Sky; and bring incredible theme parks and attractions to life through Universal Destinations & Experiences. Visit www.comcastcorporation.com for more information.
In the latest close session, Equinix (EQIX - Free Report) was down 1.85% at $1,023.81. The stock's change was less than the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 0.65%.
Heading into today, shares of the data center operator had lost 2.44% over the past month, lagging the Finance sector's loss of 1.37% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Equinix in its upcoming release. On that day, Equinix is projected to report earnings of $10.51 per share, which would represent year-over-year growth of 6.92%. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 10.95% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $43.45 per share and revenue of $10.27 billion, indicating changes of +13.36% and +11.46%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Equinix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Equinix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Equinix is holding a Forward P/E ratio of 24. Its industry sports an average Forward P/E of 14.51, so one might conclude that Equinix is trading at a premium comparatively.
Meanwhile, EQIX's PEG ratio is currently 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. EQIX's industry had an average PEG ratio of 2.31 as of yesterday's close.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Technology and infrastructure veteran has led ambitious expansion of Equinix solution portfolio since 2024
, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced the appointment of DD Dasgupta as Chief Marketing Officer (CMO).
Dasgupta has more than 25 years of experience in digital infrastructure, including networking, SaaS, servers, storage, cloud, observability and security. Since 2024, he has led Equinix's portfolio of customer-focused solutions as Vice President, Product and Solution Marketing. As CMO, he will report to Equinix Chief Customer and Revenue Officer, Shane Paladin.
DD Dasgupta, Chief Marketing Officer, Equinix, Inc. "DD has extensive background in infrastructure and networking at a time when customers are navigating the significant shifts needed for the era of AI inference," said Paladin. "He deeply understands what enterprises need as they modernize their infrastructure and expand into AI, and how Equinix, as the neutral exchange they trust to run, connect, and orchestrate their digital business, is uniquely positioned to help them get there."
Before joining Equinix in 2024, Dasgupta led product management and product marketing for Cisco's data center portfolio, spanning networking, servers, storage and SaaS automation. Prior to Cisco, he served as the founding CMO at Avi Networks, orchestrating the company's journey from stealth mode to a successful acquisition by VMware. His extensive career also includes leadership roles at Juniper Networks, HP and Nortel Networks across marketing, product management and software engineering. He earned an undergraduate degree in computer science and an MBA at Santa Clara University.
"As businesses are navigating the rapidly evolving infrastructure they need to meet the growing demands of AI, there has never been a more exciting time to be at the center of these innovations," said Dasgupta. "Enterprises are moving from AI pilots to full deployment, and interconnecting with more clouds, AI providers, partners and locations than ever before. Equinix is uniquely positioned to help them thrive through its trusted, neutral exchanges. I am excited to continue advancing our work to deliver the most innovative and useful infrastructure for the more than 10,000 customers we serve."
About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Hyperscalers are signing multi-year leases at a pace that is rewriting the income playbook, and three REITs are quietly collecting the rent on every server warehouse in the deal. The question is which one fits a portfolio built for the…
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Data centers are the physical layer under the AI buildout: leased, powered warehouses that house the servers running training and inference. Landlords sign multi-year rent contracts, often with hyperscalers (the largest cloud and AI operators such as Amazon, Microsoft, Google, Meta, and Oracle), which makes the cash flows look like industrial real estate with a technology tailwind. Iron Mountain management has cited an industry expectation that data center capacity grows at a 15% to 25% CAGR, and leasing activity across the three names below supports that framing. All three are US-listed equity REITs that own the properties and collect the rent, not mortgage REITs. (we profiled seven suppliers powering this same buildout, from power to cooling, in a free report you can grab here: 7 Stocks Powering the AI Boom.)
Digital Realty Trust: Global Landlord to the Hyperscalers Digital Realty Trust (NYSE:DLR | DLR Price Prediction) operates PlatformDIGITAL, Interxion, and ServiceFabric across 733 data centers in 39 metros, with major development markets in Northern Virginia, Charlotte, Atlanta, São Paulo, and Marseille. The customer base spans traditional hyperscalers, network carriers, and enterprise AI adopters.
Q1 2026 delivered $707 million in annualized GAAP base rent bookings at 100% share, anchored by a 200 megawatt AI inference lease, the largest hyperscale deal in company history. In Q2, backlog reached a record $1.9 billion at 100% share and $1.4 billion at Digital Realty share, which management called roughly 30% of in-place data center revenue. Cash releasing spreads on renewals exceeded 25% in the quarter.
The quarterly dividend of $1.22 per share, implies an annual $4.88, compared with a share price of $187.79. That payout has been held at $1.22 quarterly since the March 2022 ex-date, so this is a dividend that has been maintained rather than raised through the AI cycle. Coverage on Core FFO is comfortable: 2026 guidance was raised to $8.15 to $8.20 per share of Core FFO excluding net promote income, well ahead of the $4.88 annual dividend.
Bull case: a 1.4 gigawatt development pipeline that is 63% pre-leased pro forma for July signings, with an average expected stabilized yield of 11.5%, plus 600 megawatts of secured Kansas City utility power ramping in 2028, points to multi-year rent growth without heroic assumptions.
Bear case: development capital intensity. Digital Realty already sold 7.3 million shares under its ATM for about $1.3 billion of net proceeds and raised 2026 net capex guidance to $4.25 billion to $4.75 billion. A flat dividend during a heavy equity-issuance phase is the cost of growth, and an AI capex slowdown would leave that unfunded pipeline exposed.
Equinix: Interconnection Moat Meets AI Inference Equinix (NASDAQ:EQIX) runs a global colocation and interconnection platform, with 52 expansion projects underway across 33 markets. The differentiator is density of network connections. Interconnection is the paid cross-connect that lets a tenant plug directly into another tenant, a cloud, or a carrier inside the same building, which cuts latency and backhaul cost. Equinix says its ecosystem is approximately twice the size of the next largest provider, and that eight of the top 10 model providers and eight of the top 10 neoclouds are already running key networking workloads on Equinix.
Revenue reached $2.625 billion, up 16.4% year over year, with annualized gross bookings of $424 million, up 23%, and a record 9,700 net interconnections added. Adjusted EBITDA margin was 53%, up 300 basis points year over year. Management raised full-year AFFO per share growth expectations to 10% to 12% and called it “the largest single guidance raise in the history of our company”.
Currently the quarterly dividend pays out $5.16 per share, annualized for $20.64, against a share price of $1,040.83. The dividend has moved from $4.26 in 2024 to $4.69 in 2025 to $5.16 in 2026. AFFO coverage is conservative: full-year 2026 AFFO per share is guided to $42.69 to $43.29 against expected cash dividends of roughly $2.039 billion for the full year. Long term, management expects dividend per share growth to approximate AFFO per share growth, which is guided at 9% to 12% annually through 2029.
Bull case: CEO Adaire Fox-Martin said “the AI-driven infrastructure cycle continues to accelerate and it’s playing directly to our strengths”, and the stabilized portfolio is already generating a 27% cash-on-cash yield on gross property and equipment. That is the kind of unit economics that funds continued dividend growth.
Bear case: power, land, and cost of capital. Equinix is committing to $5 billion to $7 billion of annual capex through 2029, and management expects the blended cost of capital to rise by approximately 150 basis points and leverage to increase by about a turn across the plan.
Iron Mountain: Records Storage Cash Cow Bankrolling a Data Center Ramp Iron Mountain (NYSE:IRM) is a hybrid equity REIT: a legacy physical records storage business with record storage volume of 735 million cubic feet and a 93.4% retention rate, layered with fast-growing data center, digital, and asset lifecycle management segments. Those three growth segments grew more than 50% year over year and now account for 35% of second-quarter revenue.
Revenue was $263 million in Q2, up 39% year over year, with renewal pricing spreads of 12% cash and 14% GAAP. Year-to-date leasing reached 110 megawatts through July, including 75 megawatts in July alone, capped by a 51 megawatt Mumbai lease with a major global hyperscaler on a 10-year contract and a 25 megawatt lease that fully leased London 3. Approximately 325 megawatts of leasable capacity is expected to energize over the next 24 months.
T quarterly dividend comes in at $0.864 per share, for an annualized $3.456, compared with a share price of $114.98. The dividend has stepped up in four consecutive years, from $0.65 through mid-2024, to $0.715, to $0.785, and now $0.864 quarterly. AFFO coverage: full-year AFFO per share guidance of $5.87 to $5.93 against the $3.456 annualized dividend, consistent with management’s stated low-60s% AFFO payout ratio target.
Bull case: the records business funds a data center build with signed, hyperscaler-anchored backlog that supports additional revenue growth of $370 million beyond 2026, and the ALM segment now runs at $288 million of quarterly revenue, up 88% year over year, giving Iron Mountain a second growth lever tied to the same hyperscaler refresh cycle.
Bear case: the balance sheet. Iron Mountain carries $17.3 billion of net debt, negative shareholders’ equity of $955 million, and net lease-adjusted leverage of 4.8 times. It recently issued a $1.5 billion bond with a 6.25% fixed coupon maturing in 2035. Higher rates and continued data center capex needs mean interest expense is a real headwind if hyperscale leasing lumpiness slows the AFFO ramp.
Bottom Line for Income Portfolios Current yields here are moderate by design: dividends are covered by AFFO or Core FFO, and the growth is coming from real, signed hyperscale leases against gigawatt-scale pipelines. Equinix is the compounder with the interconnection moat and a rising dividend. Iron Mountain is the highest-growth data center story on the roster, funded by a records business that keeps paying the bills. Digital Realty is the pure-play landlord with the largest hyperscale lease in its history in the bag, though income buyers should recognize the dividend has been flat while the company issues equity to fund the build. For a retirement income sleeve tied to the AI buildout, owning the physical rent stream beats owning the chip cycle.
Contact [email protected] for any questions or corrections.
REDWOOD CITY, Calif., Sept. 4, 2026 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced that its executives will attend three upcoming investor conferences: Barclays 24 th Annual Global Financial Services Conference on Monday, September 14.
Key Takeaways Equinix, NVIDIA and Together AI are launching a distributed AI inference program for enterprises.Equinix Inference Exchange targets faster deployment, flexibility and cost efficiency as AI scales.The platform will support metro-edge inference, open models and sovereign AI, with a 2027 launch planned. Equinix, Inc. (EQIX - Free Report) has expanded its longtime collaboration with NVIDIA and announced a new collaboration with Together AI to deliver Equinix Inference Exchange, a distributed AI inference program for global enterprises. The offering combines NVIDIA Enterprise Reference Architectures, Together AI’s inference platform and Equinix’s global infrastructure to improve deployment speed, flexibility and cost efficiency as enterprises move AI workloads from experimentation to production.
The initiative addresses a growing challenge for enterprises as AI scales across models, cloud providers and geographies, determining where inference should run. As enterprise AI moves into production, inference increasingly needs to run closer to users, data and applications it serves. This requires enterprises to balance performance, cost and governance while deciding where AI infrastructure runs and how it connects to dependent workloads. Equinix Inference Exchange will provide secure, low-latency connectivity to clouds, networks and AI providers through Equinix Fabric.
Equinix’s global footprint provides the infrastructure foundation for the solution. The company has more than 280 data centers across 77 metros, 230 cloud on-ramps and more than 10,500 businesses interconnected on its neutral exchange. Eight of the top 10 AI model providers and nine of the top 10 AI cloud providers have deployed with Equinix, reinforcing its position within the AI ecosystem.
Under the three-layer model, Equinix will provide power, advanced cooling, operational support and connectivity. NVIDIA will provide its Enterprise Reference Architectures and AI infrastructure designed to maximize AI factory throughput and minimize token cost. Together AI will operate the platform, which supports more than 200 open-source models, with multitenant deployments for shared efficiency and dedicated single-tenant environments requiring dedicated capacity.
Equinix Inference Exchange is designed to support metro-edge inference, open-model migration and sovereign AI. For regulated industries or specific geographies, it will enable AI workloads to run in locations that support data residency and sovereignty requirements while maintaining control over where data and inference are processed. Equinix expects Inference Exchange to become available in the first quarter of 2027.
ConclusionEquinix Inference Exchange strengthens EQIX’s positioning in enterprise AI by extending its global interconnection ecosystem into distributed inference. The initiative aligns with rising AI-related demand, record interconnection additions and broad-based bookings momentum, reinforcing Equinix’s role as critical infrastructure for increasingly distributed workloads.
Although the service is not expected to become available until the first quarter of 2027 and Equinix has not disclosed financial targets for the offering, Inference Exchange could provide an additional growth opportunity as enterprises increasingly move AI workloads from experimentation into production.
In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 4.8% against the industry’s 1.8% decline.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and Welltower (WELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.
The Zacks Consensus Estimate for WELL’s 2026 FFO per share is pegged at $6.40. This calls for a year-over-year increase of 20.98%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Key Takeaways Equinix and CPP Investments completed their $4B acquisition of Nordic data center operator atNorth.CPP Investments owns 51%, while Equinix holds 34% after committing $1.3B and $895M, respectively.The deal is immediately accretive to Equinix's AFFO per share and supports atNorth's expansion. Equinix, Inc. (EQIX - Free Report) and Canada Pension Plan Investment Board (CPP Investments) have completed their $4 billion acquisition of Nordic data center operator atNorth, expanding their exposure to Nordic infrastructure that supports artificial intelligence, cloud and high-performance computing workloads. The transaction gives Equinix a meaningful stake in the high-density data center platform, while CPP Investments becomes the controlling shareholder.
atNorth has a footprint across all five Nordic countries, with eight operational data centers, several projects under development in Sweden, Finland, Norway and Denmark, and expansions at existing sites. Its portfolio is designed to serve enterprise and hyperscale customers through advanced cooling technologies, renewable-energy integration and heat-reuse solutions. These capabilities enable the platform to support increasingly demanding AI and high-performance computing workloads while benefiting from the Nordics' access to renewable power.
Following the transaction, CPP Investments owns approximately 51% of atNorth after committing $1.3 billion, while Equinix holds about 34% following an $895 million commitment. Partners Group, atNorth's previous owner, reinvested $260 million for an approximately 10% stake, with the remaining interest held by atNorth's internal stakeholders. atNorth will continue operating independently under its existing brand, while Equinix brings global customer relationships and digital infrastructure expertise to support its expansion.
For Equinix, the structure provides participation in atNorth's growth without taking full ownership of the capital-intensive platform. The transaction is immediately accretive to Equinix's adjusted funds from operations (AFFO) per share. A $4.1 billion financing package, underwritten by European and Canadian lenders, will help fund the acquisition and provide capital for atNorth's continued expansion, strengthening Equinix's longer-term exposure to Nordic AI-ready infrastructure growth.
ConclusionThe atNorth acquisition is likely to strengthen Equinix’s AI and hyperscale growth strategy by expanding its exposure to high-density Nordic infrastructure at a time of strong customer demand, record bookings and rising interconnections.
For EQIX shareholders, the deal offers additional geographic diversification and potential earnings growth without requiring full ownership of atNorth. The transaction is immediately accretive to Equinix’s AFFO per share and complements the company’s broader long-term growth outlook, which calls for 9–12% annual AFFO-per-share growth from 2027 through 2029.
In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 4.8% against the industry’s 1.8% decline.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and Welltower (WELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.
The Zacks Consensus Estimate for WELL’s 2026 FFO per share is pegged at $6.40. This calls for a year-over-year increase of 20.98%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
When Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang took the stage at the G20, he wasn’t unveiling a new chip or discussing quarterly demand. Instead, he reframed artificial intelligence as something far more fundamental: infrastructure.
By comparing AI to “water, roads and electricity,” Huang made a case that countries risk falling behind economically if they fail to build their own AI capabilities—a message that could reshape who buys Nvidia’s technology in the years ahead.
“Every single country needs to build infrastructure so that you could support your own local economy,” Huang said at the G20, adding that AI infrastructure is “the great equalizer” and that “the single worst outcome” for any country would be to be left behind.
Huang’s remarks reflect Nvidia’s increasingly public push for what the industry calls sovereign AI—the idea that countries harness their own AI, computing infrastructure, and data centers rather than relying entirely on foreign platforms.
The Winners Extend Beyond NvidiaIf governments increasingly treat AI infrastructure as a strategic investment, Nvidia stands to benefit as the leading supplier of AI accelerators. But the spending would not stop with GPUs.
Read Next
Large AI data centers require high-speed networking, advanced cooling systems, reliable power equipment and physical facilities. That creates potential opportunities for companies such as:
Arista Networks, Inc (NYSE:ANET) and Broadcom Inc. (NASDAQ:AVGO) in networking Vertiv Holdings, LLC (NYSE:VRT) and Eaton Corporation, PLC (NYSE:ETN) in power and cooling infrastructure, and Digital Realty Trust, Inc (NYSE:DLR) and Equinix, Inc. (NASDAQ:EQIX) in data center operations. Huang’s comments broaden the investment conversation. If sovereign AI becomes a recurring theme in government budgets, demand could shift from a handful of U.S. hyperscalers to a more diversified mix of public-sector and regional infrastructure projects.
The Investment TakeawayHuang’s G20 remarks are best understood not as a policy speech but as a roadmap for Nvidia’s next addressable market. The key question for investors is no longer whether hyperscalers will keep spending on AI—it is whether governments begin treating AI infrastructure as essential national infrastructure.
The evidence to watch will be concrete commitments rather than rhetoric: national AI budgets, sovereign cloud initiatives, public-private partnerships and large-scale AI data center announcements. If those projects accelerate, the beneficiaries may extend well beyond Nvidia to the broader ecosystem that powers AI infrastructure.
Read Next
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Both data center REITs just paid shareholders, both ride the same AI wave, but their dividend scorecards look nothing alike. One has raised its payout for over a decade while the other has frozen shareholders out for four years despite…
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Two data center REITs just paid investors, and their scorecards on payout coverage look very different. Digital Realty Trust (NYSE:DLR | DLR Price Prediction) sends shareholders $1.22 per share on September 30, 2026, the same quarterly rate it has paid since March 2022. Equinix (NASDAQ:EQIX) paid $5.16 per share on September 16, 2026, part of a raise that pushed the payout 10% higher and extended its 11th consecutive year of dividend growth. Same industry, same AI tailwind, two grades on the coverage math.
Payout Coverage: Who Has More Room to Run Equinix guides full-year 2026 AFFO per share to $42.69 to $43.29 against expected cash dividends of roughly $2.039 billion. CFO Olivier Leonetti confirmed the target on the July call: “we have a payout ratio in the 50% range, so we will have a sizable retained cash flow.” That retained cash flow funds a capital budget of $5 billion to $6 billion for the year without stressing the dividend.
Digital Realty’s coverage is thinner on a headline basis but improving fast. FY2026 Core FFO per share guidance sits at $8.00 to $8.10 against an indicated annual dividend of $4.88, implying a payout in the low 60s. Management raised the Core FFO per share range excluding net promote income to $8.15 to $8.20 after Q2, calling it the “second consecutive year of double digit core FFO per share growth.”
Growth Streak vs. Frozen Payout DLR’s $1.22 quarterly rate has not moved in more than four years. The company last raised the dividend from $1.16 to $1.22 with the March 2022 payment, and every declaration since has held the line. That stall now stretches across a period where Core FFO per share rose from $1.77 in Q1 2025 to $2.04 in Q1 2026. The company is earning more, but shareholders are not getting more in the mailbox.
Equinix moved the other way. The quarterly dividend stepped from $4.69 to $5.16 with the February 2026 payment, and the run of raises now spans over a decade. Management explicitly linked future increases to earnings, telling investors “dividend growth to approximate AFFO per share growth” through 2029, with AFFO per share expected to compound at 9% to 12% annually.
Balance Sheet Behind the Checks Coverage is only as durable as the balance sheet. Equinix carries net leverage of 3.6 times adjusted EBITDA with $7.7 billion of liquidity. Digital Realty runs hotter at 4.7 times debt to adjusted EBITDA, though CFO Matt Mercier flagged that as “well below our long-term threshold” and paired it with roughly $6 billion of liquidity. DLR’s backlog reached a record $1.4 billion at DLR share, roughly 30% of in-place data center rent, which management said should support “multiple years of double-digit growth.” The capital funding that backlog has to come from somewhere, and the picks-and-shovels names on the other side of the meter, power, cooling, and networking, are the subject of a free report we put together on seven AI infrastructure suppliers that aren’t chipmakers.
Total Return Scorecard Investors have noticed the difference. EQIX is up 36.15% year to date and 33.49% over one year. DLR trails with a 20.05% year-to-date gain and 12.45% over one year. Market caps reflect the gap: $99.4 billion for Equinix versus $67.3 billion for Digital Realty.
Grading the Coverage On payout coverage alone, Equinix earns an A. A payout ratio in the 50% range, an 11-year growth streak, and explicit guidance tying future raises to double-digit AFFO growth is the textbook profile. Digital Realty grades a C. The FFO math works, the growth is accelerating, and leverage is dropping, but a dividend frozen for four consecutive years while earnings compound sends a mixed message about capital priorities. The next signal to watch is whether DLR’s board finally moves the $1.22 rate as 2026 Core FFO per share crosses $8.15 to $8.20. Until then, EQIX owns the scorecard.
Contact [email protected] for any questions or corrections.
Long before the era of the hyperscalers and neoclouds, and decades ahead of the AI data center boom, there was Equinix.
Described as a colocation facility, Equinix provides data center space for over 10,500 customers, offering space, power, cooling and security for companies that need a place to house their servers, routers and storage systems.
That experience, dating back to the 1998 dot-com bonanza, has given Equinix an important and expanding role in the artificial intelligence data center market, where hyperscalers are expected to spend over $5 trillion by 2030, according to Goldman Sachs Research. On Wednesday, Equinix inked a deal with Nvidia that gives customers a flexible way to run their AI models on open-source cloud platform Together AI.
Equinix's stock price is up 33% this year, beating all of megacap tech and lifting the company's market cap to $100 billion. It's by far the most valuable data center real estate investment trust (REIT), ahead of Digital Realty, which has a market cap of $68 billion.
Equinix vs. S&P 500 this year
Hyperscalers like Amazon and Google, and neoclouds like CoreWeave are collectively spending hundreds of billions of dollars a year on infrastructure, with an outsized amount of that going to serve major AI labs like OpenAI and Anthropic. Equinix, by contrast, rents out space in its facilities to customers of all shapes and sizes that can run servers on a variety of compute platforms, from Nvidia to AMD.
At an event in San Francisco, California, on Wednesday tied to the Nvidia deal, the chipmaker's CEO, Jensen Huang, spoke by video with Equinix CEO Adaire Fox-Martin. Huang said that the location of Equinix's facilities allow you to be "close to where the action is, where all the sensors are." And because the architecture is distributed, "you could both simultaneously be close and be far away," he said.
Equinix is one of the oldest names in the data center business. Its 281 legacy colocation facilities span 77 metropolitan areas across six continents, according to Maryam Zand, a vice president at the company who runs its AI ecosystem strategy.
"The companies you already use are all running on us," she says.
Financing details for Wednesday's deal weren't disclosed. Zand said Together AI, which offers access to 200 open-source models, will be the seller of record, billing its end customers who use the new program. Called Equinix Inference Exchange, it will be available in the first quarter of 2027.
Focus on inferenceWhile AI training teaches the model to learn from patterns in large amounts of data, inference refers to the decisions that are made based on new information. As AI evolves from simple call-and-answer chatbots to more complex agentic apps, inference has become more critical than training. That means workloads need to run on a wider variety of chips such as central processing units (CPUs), instead of relying solely on general-purpose workhorse graphics processing units (GPUs).
Equinix has mainly stuck to its old playbook of building smaller data centers in locations close to city centers, positioning them as network interconnection hubs. Digital Realty, by contrast, began to place greater emphasis on large-scale facilities for hyperscale customers.
For xScale, the side of Equinix's business that serves hyperscalers, most facilities are on the smaller side. They're under 100 megawatts, while some AI data centers are being measured in the gigawatts.
Vlad Galabov, a longtime data center analyst, said Equinix was "too slow" to react to the gigawatt-scale demand.
"There was new, hungrier guys who came in to start to build data centers for some of these burst projects that just quickly spun up," said Galabov, host of the AIDC Debate podcast. "Equinix, Digital Realty, all of the colocation companies are now seeing the need to plan more strategically."
Equinix's announcements Wednesday also included Equinix Fabric One, a new connectivity service meant to simplify networks that operate using multiple clouds and AI models.
Zand described the announced program with Nvidia and Together AI as an "inference platform as a service," that enables customers to connect to a variety of different clouds and providers, run inference on open source models, and "optimize their tokenomics" — or reduce costs.
She told CNBC that Equinix data centers are optimized for Nvidia's B300 Blackwell Ultra GPUs, but it also has some liquid-cooled facilities where customers can use the newer Vera Rubin chips.
Where Equinix has a particular advantage is its urban locations, which are important for inference and the high-speed communication required between servers and end users. By 2030, inference will make up half of all AI compute and 30% to 40% of total data center demand, according to McKinsey.
"The changes are very rapid in today's environment, in the whole AI ecosystem," Zand said. "Customers need to be able to move as the market moves."
Not all investors are excited about the story.
Short seller Jim Chanos told CNBC's "Closing Bell" in May that he was betting against the stock, as well as Digital Realty, saying "they're not great businesses" and are "not very profitable."
"They're very low return on capital businesses, very capital-intensive businesses, and they don't grow that fast," he said.
He added that, "the legacy data center companies are a distinct difference from the data centers that are being built for AI."
In the latest quarter, Equinix reported a 16% increase in revenue from a year earlier to $2.63 billion. CoreWeave, one of the leading neoclouds, saw revenue more than double to $2.58 billion. However, Equinix reported net income of $477 million in the period, while CoreWeave lost $626 million.
Galabov said Equinix is "super diversified" with a huge amount of general purpose compute and services across a very wide client base.
"They are not exposed to an AI bubble risk," Galabov said. "That means you're missing out on some of the boom. It's just inevitable. High risk, high return."
Equinix Fabric One will deliver any-to-any connectivity across enterprise, cloud and AI environments, with AWS and Google Cloud serving as lead integration partners
, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced Equinix® Fabric One™, a managed, any-to-any connectivity service designed to simplify how enterprises connect distributed cloud, network and AI environments. The announcement was made at Equinix Horizon, the company's inaugural customer and partner event.
Equinix® Fabric One™ customer journey Built to address the networking complexity of the AI era, Equinix Fabric One will leverage open connectivity specifications developed by Amazon Web Services (AWS) and Google Cloud to support interoperability across distributed cloud, AI and enterprise environments. Customers will simply specify what they need connected and their requirements, and Equinix Fabric One determines and delivers the connectivity required to make it happen. At Horizon, Equinix is also announcing Equinix® Inference Exchange to accelerate enterprise AI infrastructure deployments.
"For decades, enterprise networks have been built one connection at a time for each partner and provider they depend on. That approach doesn't scale in a world of distributed AI that demands dynamic, flexible and real-time connectivity," said Chris Audie, Chief Product Officer, Equinix. "Equinix Fabric One will reduce the complexity that's slowing enterprises down by automatically managing connectivity across distributed architectures, based on the customer's intent."
The Connectivity Modern Enterprises Need
As enterprises need to connect to more clouds, AI providers, partners and locations, every new connection can become a networking project requiring specialized expertise, cross-functional coordination and ongoing management. That complexity can slow deployment and makes it harder for infrastructure to keep pace with the needs of the business.
"Networking is still a key area of enterprise infrastructure that remains heavily dependent on manual design and operations," said Andrew Buss, Senior Research Director, Cloud and Datacenters, Enterprise Infrastructure at IDC. "Organizations are increasingly looking for ways to simplify and automate how connectivity is provisioned and managed across distributed cloud and AI environments, but achieving this transformation remains a major challenge. Advances that enable more integrated automation and intent-driven approaches can reduce operational complexity and risk while supporting the flexibility modern AI and multicloud architectures require."
Equinix Fabric One aims to modernize how enterprises consume connectivity. Instead of assembling and managing networking service component by component, customers simply specify what they need through a portal, APIs, automation workflows, agent-based requests or natural-language prompts. Equinix Fabric One will automatically orchestrate and manage the routing, cloud connectivity, encryption, resiliency and failover required to deliver that outcome as a single managed service.
Equinix Fabric One is built on the company's trusted, neutral exchange of more than 10,500 interconnected businesses, approximately 3,000 cloud and IT providers, and active deployments by eight of the top 10 AI model providers and nine of the top 10 neoclouds. Equinix's neutrality gives enterprises the freedom to connect across providers while keeping their architecture flexible as business and technology needs evolve.
Neutral by Design. Open by Default.
Built on open connectivity specifications, Equinix Fabric One leverages the open source OpenAPI 3.0 Interconnect specification, which AWS and Google Cloud collaborated on to preserve choice and interoperability across distributed AI, cloud and enterprise environments. As enterprises move toward agentic architectures, applications and AI agents can discover, request and provision connectivity programmatically, without manual intervention.
"Customers shouldn't have to figure out how to connect across multiple clouds and AI environments on their own," said Robert Kennedy, Vice President, AWS network services. "They should just define what they need and have it work. Fabric One builds on the open interconnect specification that AWS and Google Cloud helped define and deliver exactly that. A managed service that handles the complexity so customers can focus on their AI workloads, not how everything connects."
"Cross-cloud interoperability is the backbone of the AI era," said Rob Enns, Vice President of Engineering, Cloud Networking, Google Cloud. "We helped establish the open interconnect specification so enterprises no longer have to manage the complexity of multi-cloud networking. By combining Google Cloud's Cross-Cloud Network capabilities with Equinix Fabric One, we are giving customers an automated, intent-driven network that lets them quickly deploy distributed AI workloads."
Connectivity That Evolves with the Enterprise
The world's leading organizations are increasingly seeking connectivity models that allow teams to focus on what they need rather than the complexity of building and managing individual connections.
"As technology environments become more distributed, AI workloads and multicloud architectures require connectivity that is flexible, scalable and easier to manage," said Paul Hager, CEO, Hyundai AutoEver America. "Equinix Fabric One has the potential to accelerate our efforts to meet those needs."
Equinix Fabric One is expected to enter beta later this year, with general availability planned for 2027, initially in North America.
Additional Resources
The Network Is How Multicloud AI Scales [Analyst Report] The Coordination Economy: How Enterprises Really Build AI Value [Blog] Equinix Fabric One [Product Page] Equinix Fabric One Product Release Note [Release Note] Equinix Horizon Event Page [Event Page] About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix Inference Exchange combines NVIDIA Enterprise Reference Architectures, Together AI's inference platform and Equinix's global infrastructure to optimize deployment speed, flexibility and cost efficiency
, /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced a significant expansion of its longtime collaboration with NVIDIA to deliver Equinix® Inference Exchange, a distributed AI inference program for global enterprises, alongside a new collaboration with Together AI.
Equinix® Inference Exchange - Bringing inference closer to where data, users and applications live As AI scales across models, providers and geographies, where inference runs is a strategic imperative that determines performance, cost and governance. Equinix Inference Exchange will give enterprises a faster path from AI experimentation to production, with secure, low-latency connectivity to the data, users and ecosystem they depend on.
This collaboration brings together NVIDIA's validated Enterprise Reference Architectures with Together AI's inference platform, supporting more than 200 open-source models. Delivered through Equinix's global data centers, it will provide connectivity to clouds, networks and AI providers through Equinix Fabric®.
The solution will be announced today at Equinix Horizon, the company's inaugural customer and partner event, alongside Equinix® Fabric One™, which will make it easier for enterprises to connect across globally distributed AI environments.
"AI is transforming enterprise technology at extraordinary speed, and the infrastructure decisions enterprises make today will define their competitive position for years to come. Equinix is uniquely positioned to deliver what this moment demands based on our nearly three decades building the trusted exchange where the world's enterprises run, connect and orchestrate their most critical workloads," said Adaire Fox-Martin, Chief Executive Officer and President, Equinix. "Our longtime relationship with NVIDIA delivers the accelerated computing foundation at the heart of modern AI, while Together AI's commitment to open ecosystems gives enterprises the flexibility to scale on their terms. Equinix Inference Exchange will enable architectures that are neutral by design, open by default and engineered for exceptional performance."
"Equinix Inference Exchange turns the world's leading digital interconnection platform into a global fabric for AI inference," said Raj Mirpuri, vice president of global AI clouds and infrastructure ecosystem at NVIDIA. "As accelerated compute becomes a strategic asset class, combining NVIDIA's infrastructure & technology with Together AI's open-model inference platform and Equinix's global reach gives enterprises a powerful, distributed foundation to bring intelligence closer to their data, applications and customers—accelerating the next generation of intelligent services."
"Together AI was built on the conviction that open, accessible AI is what will define the industry moving forward, because enterprises shouldn't have to choose between model performance and operational flexibility," said Vipul Ved Prakash, co-founder and CEO, Together AI. "What we are building with Equinix and NVIDIA proves that model choice and performance are not trade-offs. They are the foundation of enterprise AI done right."
Where Inference Runs Matters
The pace of enterprise AI adoption is outrunning the infrastructure needed to support it. As enterprise AI moves from experimentation to production, inference increasingly needs to run closer to the users, data and applications it serves across clouds, models, providers and geographies. This shift requires enterprises to determine not only how to deploy AI infrastructure, but where it should run and how it connects to the data, applications and workloads it depends on.
Managing these distributed inference deployments introduces significant operational complexity at precisely the moment enterprises need greater control and visibility.
"Performance, cost and governance have become strategic considerations as AI workloads grow more distributed across providers, data sources and environments," said Nick Patience, Vice President & Practice Lead, AI Platforms, The Futurum Group. "Organizations are increasingly focused on where inference runs and how quickly it can be deployed into production. Solutions that simplify inference deployment while preserving flexibility will become increasingly important to achieve business outcomes."
Equinix brings unmatched scale and ecosystem density to this challenge, with more than 280 data centers across 77 metros, 230 cloud on-ramps and over 10,500 businesses interconnected on its neutral exchange. Eight of the top 10 AI model providers and nine of the top 10 AI clouds are deployed with Equinix, underscoring the company's position at the center of the AI ecosystem.
Built for Choice and Flexibility
Together AI is the latest addition to Equinix's expansive AI ecosystem, bringing open-model flexibility and choice to enterprises deploying AI at scale. The solution combines three complementary layers designed to simplify distributed AI inference:
Equinix provides the infrastructure foundation, including power, advanced cooling and day-two operations, connected through Equinix Fabric to the clouds, networks and AI providers that inference depends on. NVIDIA anchors the build with its Enterprise Reference Architectures and AI infrastructure purpose-built to maximize AI factory throughput and minimize token cost. Together AI runs the platform on top, supporting both multitenant deployments for shared efficiency and dedicated single-tenant environments for workloads that require dedicated capacity. Built on Equinix Fabric, the solution will connect to inference providers across major metros worldwide, cutting time-to-first-token. It also will connect to an expansive ecosystem of clouds, networks and AI providers, reducing deployment complexity.
Designed for Modern Enterprise Inference
The solution aims to support a broad range of enterprise inference scenarios, including:
Metro edge inference: For organizations that need inference running closer to users and data, enabling lower-latency AI experiences while leveraging the security, operational scale and global reach of Equinix. Open model migration: For enterprises moving workloads from closed, proprietary models to open-source alternatives to control cost and avoid lock-in, the solution will provide a direct, low-friction path to run that migration in production, with Together AI's open-model platform reachable over the same interconnected fabric enterprises already use to reach their other providers. Sovereign AI: For enterprises operating in regulated industries or specific geographies, the solution will enable AI workloads to run in locations that support data residency and sovereignty requirements, providing a simpler path to deploying AI at scale while maintaining control over where data and inference are processed. Equinix Inference Exchange will be available starting in Q1 2027.
Additional Resources
Token Optimization Begins with Choice [Analyst Report] The Coordination Economy: How Enterprises Really Build AI Value [Blog] Equinix Inference Exchange [Product Page] Equinix Inference Exchange Product Release Note [Product Release Note] Equinix Horizon Event Page [Event Page] About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
In the news release, CPP Investments and Equinix Complete atNorth Acquisition to Support Growth of Leading Nordic Data Center Platform, issued 02-Sep-2026 by Equinix, Inc. over PR Newswire, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:
CPP Investments and Equinix Complete atNorth Acquisition to Support Growth of Leading Nordic Data Center Platform, /PRNewswire/ -- Canada Pension Plan Investment Board (CPP Investments) and Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, have completed the acquisition of atNorth, a leading Nordic data center developer and operator with a scalable portfolio of high-density colocation and built-to-suit data facilities.
atNorth ICE02 data center in Reykjanesbær, Iceland atNorth's footprint spans across all five Nordic countries, with eight operational data centers and several new projects underway across the territory. This includes sites under development in Sweden, Finland, Norway and Denmark, alongside expansions to existing sites and a strong portfolio of additional development projects.
Together, the operating portfolio and development pipeline provide atNorth with significant capacity to serve growing demand from global enterprise and hyperscale customers across AI, cloud and high-performance computing workloads, supported by advanced cooling technologies, renewable energy integration and heat reuse solutions.
The US$4 billion acquisition, by CPP Investments and Equinix, builds on CPP Investments' global experience in data center investing and underscores the strategic importance of the Nordics as a leading hub for AI-ready digital infrastructure. atNorth will continue to operate independently under its existing brand, with the backing of its shareholders to accelerate development of its pipeline and expand capacity across the Nordics. Equinix brings complementary digital infrastructure expertise and global customer relationships to support atNorth's continued growth.
Given the strength of the opportunity and confidence in the partnership since the initial announcement, Partners Group, on behalf of its clients, has elected to re-invest and acquire a 10% stake in atNorth. As a result, CPP Investments will hold a c. 51% controlling stake committing US$1.3 billion, alongside Equinix's c. 34% committing US$895 million and Partners Group's c. 10% committing US$260 million. The remainder will be held by atNorth's internal stakeholders, who have chosen to roll over a substantial portion of their equity. The transaction involves a financing package of US$4.1 billion (€3.6 billion), underwritten by a group of European and Canadian lenders to support atNorth's continuous growth, fund the transaction, as well as the capital required to fund the expansion of the business. The transaction is immediately accretive upon close to Equinix's adjusted funds from operations (AFFO) per share.
"The completion of this investment gives CPP Investments a controlling stake in one of the Nordics' leading hyperscale data center platforms, and marks an important milestone in our partnership with Equinix," said Maximilian Biagosch, Senior Managing Director & Global Head of Real Assets, CPP Investments. "With its strong portfolio of development projects, access to renewable power and differentiated capabilities for AI and high-performance computing workloads, atNorth is well positioned to support the region's next phase of growth. This important transaction also aligns with CPP Investments' focus on investing in high-quality digital infrastructure businesses that can deliver long-term value for CPP contributors and beneficiaries."
"The acquisition will strengthen our ability to support customers expanding digital and AI deployments, while increasing capacity in a region widely recognised for its advanced technology ecosystem and sustainable energy profile," said Regina Dahlström, Managing Director, Equinix Nordics. "As AI adoption accelerates, organisations need infrastructure that brings together data, clouds, networks and inference services. Expanding our footprint helps create the interconnected hubs that enable data to move efficiently and securely across ecosystems."
"Since the signing announcement earlier this year, atNorth has continued to build strong momentum, securing new hyperscale contracts and expanding our development pipeline, including a new site in Norway", said Eyjólfur Magnús Kristinsson, CEO of atNorth. "We enter this next phase from a position of strength, with a clear strategy to continue to operate independently under the atNorth brand, while working closely with CPP Investments and Equinix. The backing of our new owners, enhances our ability to scale at pace, expand capacity across the Nordics, and deepen our relationships with global enterprise and hyperscale customers."
About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2026, the Fund totalled C$863.6 billion.
For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
About atNorth
atNorth is a leading Nordic data center company that offers cost-effective, scalable high-density colocation and built-to-suit services trusted by industry-leading organizations.
With sustainability at its core, atNorth's data centers run on renewable energy resources and support circular economy principles. All atNorth sites leverage innovative design, power efficiency, and intelligent operations to provide long-term infrastructure and flexible colocation deployments.
atNorth is headquartered in Reykjavik, Iceland and operates eight data centers in strategic locations across the Nordics, as well as four mega sites under development across Kouvola, inland, Ølgod, Denmark, Sollefteå, Sweden and Haugaland, Norway. The business also has an additional metro site under development in Stockholm, Sweden.
For more information, visit atNorth.com or follow atNorth on LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of atNorth, the joint agreement between CPP investments and Equinix and the expected benefits from the acquisition or the joint agreement. Factors that might cause such differences include, but are not limited to; risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers, including the atNorth data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Key Takeaways EQIX will test quantum integration with cloud, AI and high-performance computing infrastructure.Diraq's eight-qubit system will operate alongside servers using self-contained cooling and under 20 kW.Project will assess connectivity, security and quantum interaction with CPUs and GPUs in a commercial setting. Equinix Inc. (EQIX - Free Report) is strengthening its position in next-generation digital infrastructure through a collaboration with Australian quantum-computing company Diraq. The companies plan to install Diraq's quantum computer at an Equinix data center in Sydney, marking what Diraq describes as the world’s first silicon spin quantum computer deployed inside a shared commercial data-center environment. The installation is expected to be completed in October 2026.
The quantum system will use an eight-qubit silicon chip and operate alongside conventional data-center servers. Its cooling and control electronics are designed to be self-contained, while the system requires less than 20 kilowatts of power. Importantly, Diraq expects future increases in qubit capacity to be achieved primarily through chip replacements, potentially limiting the need for extensive infrastructure modifications.
For Equinix, the deployment provides an opportunity to demonstrate how quantum systems can be integrated with existing cloud, artificial intelligence and high-performance computing infrastructure. The project will test network connectivity, remote monitoring, security and interaction between quantum processors, CPUs and GPUs under commercial data-center conditions. This could become increasingly relevant as enterprises explore hybrid computing architectures that combine classical and quantum technologies.
The collaboration also highlights Equinix’s capabilities in data sovereignty, security and compliance, which are important considerations for enterprise adoption emerging computing technologies. Once testing is completed, Diraq plans to give industry partners and customers an opportunity to see quantum computing in operation and explore potential applications within the Equinix facility.
ConclusionWhile the initiative is unlikely to materially affect Equinix’s near-term financial performance, it strengthens the company’s strategic positioning in advanced computing infrastructure. As demand for AI and high-performance computing grows and enterprises begin exploring hybrid quantum-classical architectures, Equinix’s ability to host and interconnect multiple computing platforms could support customer demand over the long term.
In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 7.3% against the industry’s 1.8% decline.
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Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and Host Hotels & Resorts (HST - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.
The Zacks Consensus Estimate for HST’s 2026 FFO per share is pegged at $2.17. This calls for a year-over-year increase of 4.83%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
SYDNEY, Aug. 31, 2026 (GLOBE NEWSWIRE) -- Diraq, the quantum computing pioneer, and Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company®, today announced plans to deploy a Diraq quantum computer at an Equinix data center in Sydney, Australia. The deployment will mark the world’s first silicon spin quantum computer to operate in a shared commercial data center, bringing quantum computing one step closer to large-scale commercial adoption.
The installed quantum computer will feature a silicon chip containing eight quantum bits (qubits), with all cryogenic cooling and control electronics self-contained. The complete system fits within Equinix’s existing data center alongside standard servers, requiring minimal integration and drawing less than 20kW of power. Scaling to higher qubit counts requires only a chip replacement, with no changes to the surrounding infrastructure, making the system easily upgradable.
“Quantum computers are about to become as essential to data centers and computing infrastructure as data servers, CPUs and GPUs,” said Andrew Dzurak, Diraq Founder and CEO. “The data center is where quantum computing goes mainstream, and that shift starts now. It’s a first, and the milestone is in the simplicity itself. Diraq’s quantum computers integrate into operational data centers like any other rack. That’s the advantage of Diraq’s silicon spin qubits: as we scale to millions of qubits, our system is deployable anywhere in the world, right next to the AI systems that are reshaping the global economy.”
The collaboration is designed to:
Test real-world performance: Evaluate how Diraq’s quantum system operates in a live commercial data center with open network connectivity, including remote monitoring and secure integration with the classical CPUs and GPUs that power today’s computing.Chart the path to commercial scale: Operating alongside the cloud and AI systems already in Equinix’s data center, Diraq will explore how quantum and AI can work together as both technologies scale, laying the groundwork for practical, hybrid quantum-classical computing.Begin partner and customer conversations: Once testing is complete, Diraq will give industry partners and customers the opportunity to see quantum computing in action and explore potential applications in an Equinix facility that already meets enterprise data sovereignty, security and compliance requirements. Jarrod Nink, Managing Director, Australia, Equinix, said: “Quantum computing’s future depends not only on breakthroughs in hardware, but on proving how these systems can operate within the digital infrastructure enterprises rely on every day. Our collaboration with Diraq will demonstrate how quantum computing can be securely deployed alongside AI, cloud and high-performance computing environments. By combining Diraq’s pioneering silicon quantum technology with Equinix’s global footprint, we’re helping to define a new benchmark for quantum deployment while supporting Australia’s ambition to become a leading global hub for quantum innovation.”
“We believe the future of computing will be quantum-enhanced and AI-enabled,” said Diraq Founder and CEO Andrew Dzurak. “Rather than replacing today’s systems, quantum computers will work alongside AI and classical infrastructure to solve problems that are currently out of reach. By bringing quantum into a commercial data center, we’re helping pave the way for that future.”
Diraq’s qubits are made the same way as the chips in today’s phones and laptops, leveraging existing semiconductor foundries to manufacture and clearing a path to millions of qubits on one chip. Because they’re so small, Diraq can pack far more qubits into less space on a single chip than other quantum technologies: the resulting quantum computing system is small enough that many of Diraq’s systems can operate inside a standard data center, beside the classical compute infrastructure it works with. Importantly, Diraq sees data centers hosting not just one quantum computer, but entire fleets of them.
At utility scale, the point where a quantum computer delivers more value than it costs to run, quantum computers will solve problems beyond the reach of today’s most powerful machines, modelling molecules and chemical reactions to accelerate drug discovery, materials design and energy solutions. They won’t replace today’s computers but work alongside them, in a hybrid future where quantum, AI and classical systems each tackle what they do best.
Installation work at Equinix’s Sydney data center will be completed in October 2026.
About Diraq
Diraq’s mission is to become the leading global provider of quantum computing hardware. Its approach turns transistors into qubits using the same CMOS fabrication technology that produces today’s computer chips. By leveraging existing semiconductor foundries rather than requiring custom manufacturing, Diraq is developing a path to millions of qubits on a single chip at a fraction of the cost. Founded by pioneering researchers and engineers in Sydney, Australia, Diraq is rapidly growing in the United States, with its U.S. headquarters in Palo Alto, a laboratory in Chicago, and a technology hub in Los Angeles (CA). The company partners with leading technology companies and foundries, including NVIDIA, Dell Technologies, GlobalFoundries, and imec, and is one of only 11 companies globally selected for Stage B of DARPA’s Quantum Benchmarking Initiative (QBI). To learn more, visit diraq.com, or follow Diraq on LinkedIn, YouTube, Substack, and X.
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix offers a neutral interconnection platform critical for AI infrastructure, benefiting from broad enterprise and hyperscaler demand. Q2 results featured 16% revenue growth, 18-19% AFFO per share growth, record interconnection adds, and the largest guidance raise in the company's history. Management now targets 11-12% revenue and 10-12% AFFO per share growth for 2026, with a long-term outlook through 2029 of 10-13% revenue growth.
