The business benefits from AI-driven power scarcity and ecosystem switching costs, but the next five years are gated by build execution and per-share financing discipline. Upside comes from faster lease-up plus higher-margin attach beyond colocation.

Equinix should compound as the neutral “meeting place” where clouds, networks and enterprises interconnect; AI-era power scarcity and sovereignty/security needs raise the value of metro proximity and verified private connectivity, letting EQIX monetize more than space (attach services) as its multi-year build cycle leases up.

AI makes power, latency, trust and network adjacency scarce; EQIX owns neutral campuses + dense partner graphs that get more valuable as cognition commoditizes.

EQIX’s base business can keep compounding because neutral interconnection ecosystems create durable switching costs: customers colocate where their partners are, and partners show up where the customers are. AI shifts demand toward high-density, power-secured metros and private connectivity, supporting premium pricing and more attach of higher-margin interconnection and software-enabled networking. The main limiter is not demand but the pace and cost of adding powered capacity without over-diluting per share.

EQIX’s key risks are physical and financial: (1) securing/energizing capacity (time-to-power) in constrained metros, (2) maintaining per-share growth through a capex-heavy cycle, and (3) holding pricing power as hyperscalers and peers pursue power-secured campuses. A slower lease-up or higher cost of capital can compress returns and the multiple.

Thesis is intact; recent updates mainly increase near-term focus on guidance, leasing and capex discipline into 2026.

More conservative on valuation uplift given the market’s preference for near-term cash yield during heavy build spend; focus shifts to execution/lease-up.

$956.28