Equinix will invest between $5 billion and $7 billion annually in new data center developments. This increased capital expenditure responds to accelerating demand from the artificial intelligence sector. The company will focus investments on established markets with existing interconnected digital ecosystems.
Executives announced the strategy at a Bank of America REIT conference. Equinix has accelerated construction phases and expanded its portfolio of powered land to support this growth.
Planned capacity additions over the next four years could nearly equal the total capacity delivered in the company’s 27-year history. Equinix targets cash-on-cash returns in the low 20% range for these developments. Each new asset has an expected stabilization period of two to three years.