Equinix has significantly increased its capital expenditure forecast, citing rising demand for AI inference workloads. The company raised its 2026 spending guidance to a range of $5 billion to $6 billion, compared to the previous estimate of $3 billion to $4 billion. For the period between 2027 and 2029, the firm projects annual capital outlays of $5 billion to $7 billion.
The company currently manages approximately 3 GW of developable land. Currently, 600 to 770 MW is under active development, with a target to reach 1 GW of total capacity by early 2027. About 80% of the planned investments will be directed toward the top 25 global metropolitan areas to address supply constraints.
Equinix reported that 30% of its remaining retail capacity for 2026 is already pre-sold, with a churn rate of 1.8%. Management intends to double the number of delivered cabinets in the second half of 2026. Revenue growth is now expected to reach 11% to 12% in 2026, with a long-term annual growth forecast of 10% to 13% through 2029.
To support its infrastructure expansion, Equinix has partnered with Nvidia. As a REIT, the company must distribute at least 90% of its taxable income to shareholders. To fund its capital expenditure plans while meeting dividend obligations, the firm may utilize a combination of debt issuance, asset recycling, and potential joint ventures.
