Published by Global Banking & Finance Review®
Posted on June 26, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleEquinix shares fell 8% after revenue forecasts disappointed. The company plans to double capacity to meet AI demand, increasing capital spending significantly.
(Reuters) -Equinix's shares fell 8% on Thursday after the data center firm forecast revenue growth below expectations and projected heavy investments to cater to AI demand in the long term.
The company plans to double its current capacity over the next five years to capitalize on the growing demand for infrastructure to meet the surge in artificial intelligence use.
Shares of peers Iron Mountain, Digital Realty and Core Scientific fell between 2% and 3%.
Equinix is ramping up investments to expand its infrastructure for rising AI inference demand. While this is expected to drive stronger growth in the long run — potentially crossing 10% by 2030 — near-term growth will remain modest, BMO Capital Markets analysts said in a note.
It expects its annual revenue to grow 7% to 10% from 2025 to 2029, slightly lower than its prior forecast.
Meanwhile, it updated its forecast for adjusted funds from operations (AFFO) per share growth to 5% to 9% now from 7% to 10%, which disappointed investors.
To position for growing AI inference demand, Equinix plans to increase annual capital spending to $4 billion to $5 billion from 2026 to 2029, up from $3.3 billion in 2025.
(Reporting by Akash Sriram in Bengaluru; Editing by Leroy Leo)
Equinix's shares fell 8% after the company forecasted revenue growth below expectations and projected heavy investments for AI demand.
Equinix expects its annual revenue to grow between 7% to 10% from 2025 to 2029, which is slightly lower than its prior forecast.
Equinix plans to increase its annual capital spending to between $4 billion and $5 billion from 2026 to 2029, up from $3.3 billion in 2025.
Shares of peers Iron Mountain, Digital Realty, and Core Scientific fell between 2% and 3% following Equinix's disappointing forecast.
While Equinix is ramping up investments for AI demand, it anticipates stronger growth in the long run, potentially crossing 10% by 2030.
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