Digital infrastructure provider Equinix has raised its financial guidance for the second consecutive quarter and updated its long-term outlook through 2029, citing rising demand for AI, cloud, and networking infrastructure. At the same time, the company brushed off the power and equipment constraints that are slowing much of the industry, saying it has those risks under control.
Equinix now expects annual revenue growth of 10 to 13 percent, up from the 7 to 10 percent range it set in June 2025, according to its Q2 2026 earnings results. It is also targeting an adjusted EBITDA margin of 53 percent or higher by 2029, up from 52 percent, and has lifted AFFO per share growth guidance to 9 to 12 percent from 5 to 9 percent. The biggest revision, however, is to capital expenditure, which has nearly doubled to US$ 5 billion to US$ 7 billion a year, from a previous range of US$ 3 billion to US$ 4 billion.
The raise comes on the back of a strong quarter. Revenue rose 16 percent year on year to US$ 2.625 billion, with operating income climbing 35 percent to US$ 665 million.
“Our revised 2026 guidance and long-term financial outlook reflect momentum across the business,” said Adaire Fox-Martin, Equinix President and Chief Executive Officer. “Customer demand is broad-based and growing, and Equinix is uniquely positioned to serve the networking, cloud and AI infrastructure needs of enterprises around the world.”
During the earnings call, Fox-Martin said Equinix has 52 major projects underway across 33 markets. The company announced new sites in Chicago, Istanbul, and Johor during the second quarter and expects to announce more before the end of the year, with much of its planned 2026 capacity already committed through bookings and presales.
This expansion is a response to demand from large enterprises modernizing their on-prem infrastructure to manage the broad-based distributed workloads that are commonplace today. AI-native workloads, and the service providers running them, account for the rest.
Equinix has shaped its build-out around that demand rather than building ahead of it. Chief Financial Officer Olivier Leonetti said Equinix has “developed a demand-driven capacity expansion plan that accelerates delivery timeline, enables deployment flexibility in response to demand signals, minimizes earnings drag, and maximizes our long-term growth profile.”
Delivering on that plan does not appear to be a concern for the company. Of the 3 GW of capacity planned on land under its control, Fox-Martin said Equinix has either contracted power or has a high degree of confidence that it will. On equipment, a more pressing concern for much of the data center industry, she said the company pre-purchases what it needs or moves equipment between its facilities.
“We’re feeling very confident on the supply side that we have managed all of the risks that we are aware of to the best of our ability, putting to work a combination of relationships, process, operation, and our balance sheet where necessary,” said Fox-Martin.
That upbeat outlook extends to pricing. Fox-Martin pointed to firm per-kilowatt rates and a supply-and-demand balance running in the company’s favor, particularly in constrained markets such as Frankfurt, Amsterdam, and Ashburn. In those metros, where new capacity is hard to bring on, she said Equinix sees “meaningful mark-to-market opportunity” over the life of its long-range guidance as it prices and reprices space against tight local supply.
However, confident as it may be, Equinix is still subject to the wider squeeze being felt in the market. A May 2026 Rabobank Research note pointed to interconnection queues holding up new connections and lead times of up to seven years for the gas turbines that can meet a data center’s uptime needs, with networking gear now taking as long as 52 weeks to arrive. The result, it said, is the creation of a “pay-to-play” market where developers that can lock in power and equipment upfront move ahead, and smaller ones stall. While Equinix occupies this segment, it now needs to overcome the market constraints and deliver on its plans.