...June 26, 2025 This report does not constitute a rating action. Equinix Inc. plans to double capacity by 2029. This will increase capital spending to $4 billion- $5 billion per year from $3.4 billion in 2024. This will be used to support the market's shift to AI, which will involve larger builds with increasing power density. The increased capacity includes investments in xScale joint ventures (JV) but about 60% of expansion will be dedicated to company's retail footprint to support the AI inferencing opportunity. Management's guide for earnings is in line with our expectations. The company guided to 7%- 10% annual constant-currency revenue growth and EBITDA margins approaching 52% by 2029 (from 49% today). Enterprise demand for hybrid, multi-cloud solutions will support revenue, and we expect AI inferencing demand will accelerate in 2027. We forecast EBITDA margin expansion will be due to better cost control and high-margin interconnection revenue growth as the growing Equinix Fabric virtual...
