Equinix Boosts Data Center Buildout Budget to $7B Annually Amid AI Demand
Equinix has significantly increased its capital expenditure guidance, planning to spend up to $7 billion annually through 2029 to support surging demand for AI infrastructure.
Equinix is ramping up its infrastructure investment, nearly doubling its capital expenditure guidance as the company pivots to meet the demands of AI inference workloads. The global data center REIT raised its 2026 spending forecast to a range of $5 billion to $6 billion, up from its previous estimate of $3 billion to $4 billion.
Looking further ahead, the company projects annual capital expenditures between $5 billion and $7 billion for the 2027 through 2029 period. CEO Adaire Fox-Martin and SVP of Global Real Estate Stu Thompson identified the need for higher-density, interconnected capacity as the primary driver for this increased spending.
Equinix currently holds approximately 3 gigawatts of developable powered land. Of that total, between 600 and 770 megawatts are currently under development, with the company aiming to reach 1 gigawatt of total capacity by early 2027. Roughly 80% of these investments are targeted at the top 25 global metropolitan areas, where supply is tightest and interconnection density is highest.
The company reported that 30% of its remaining 2026 retail capacity is already pre-sold, while its churn rate remains low at 1.8%. Management intends to double the number of cabinets delivered in the second half of 2026 to keep pace with demand.
Revenue growth expectations have also been adjusted upward. Equinix now anticipates 11% to 12% revenue growth for 2026, with a long-term annual growth target of 10% to 13% for 2027 through 2029. While AI infrastructure currently accounts for a minority of total business revenue, the company noted that this segment is growing faster than any other part of its portfolio.
To support these initiatives, Equinix has partnered with Nvidia to build AI-optimized infrastructure. As a REIT, Equinix must distribute at least 90% of its taxable income to shareholders, meaning the company will likely rely on a combination of debt issuance, asset recycling, and potential joint ventures to fund its multi-billion dollar expansion plans.
