Equinix NASDAQ: EQIX CFO Olivier Leonetti said the company sees strong demand for its data center and interconnection platform as artificial intelligence workloads increasingly require low-latency connectivity, global reach, neutrality and data sovereignty.
Speaking at an RBC communications infrastructure session, Leonetti said AI inference and so-called agentic AI represent a significant opportunity for Equinix because customers need access to interconnected ecosystems rather than simply compute capacity.
“This is our moment,” Leonetti said, citing the company’s global footprint, dense network of participants and interconnection capabilities. He said Equinix recently raised its outlook by three percentage points for both top-line and bottom-line growth and believes “the best is to come.”
AI Demand and Interconnection
Leonetti said Equinix reported total sales velocity of about 30% in the second quarter and described demand as strong across enterprises, neocloud providers, cloud providers and large-language-model customers. The company is selectively managing demand, he said, seeking to maintain a diverse customer mix and nurture an ecosystem that supports long-term returns from deployed assets.
He identified agentic AI as a major driver of future demand. Equinix estimates that agentic AI could account for 50% of AI demand within three years and represent 30% to 40% of data center activity over that period, according to Leonetti.
“We’re just at the start,” he said.
Interconnection demand is also benefiting from customers’ desire to move among AI models and cloud providers, he said. Leonetti said companies come to Equinix for access to an open ecosystem where they can connect with multiple participants rather than solely for compute capacity.
The company recently introduced Fabric One, an offering Leonetti said enables participants to connect with ecosystem partners in seconds, compared with roughly a month previously. While Equinix has not disclosed its pricing model for the product, he said the new offerings should command higher pricing because they provide additional value.
Leonetti also said the growing availability of open-source and open-weight AI models is favorable for Equinix. In his view, open models increase the need for customers to retain choice among providers and models, creating more demand for interconnection and access to a broad ecosystem.
Power Deployment and Supply Chain
Equinix has been able to expand capacity despite broader concerns around data center power availability and community resistance to large projects, Leonetti said. He attributed the company’s progress to its comparatively smaller data center footprint, established relationships in local communities and long-standing partnerships with utilities, general contractors and power-management suppliers.
Leonetti said Equinix expects to deploy 40% more power this year than it anticipated at the beginning of the year. In 2026, the company expects to deliver twice the amount of power it delivered in 2025, he said.
He said long-term relationships with contractors and suppliers provide greater certainty around construction starts and equipment availability. Equinix has also placed long-term orders with key partners, according to Leonetti.
In response to a question about AI inference, Leonetti said orchestration activity is expected to occur more frequently in Equinix data centers, where proximity can support latency and economic requirements. He said power deployed per cabinet has risen about 60% recently, while some Equinix facilities have added more powerful racks to support edge-compute workloads.
Global Growth, Portfolio Strategy and Financing
Leonetti said demand remains strong across the Americas, EMEA and Asia-Pacific, though the U.S. is currently growing somewhat faster. He attributed the difference to stronger economics and greater access to available space and power in the U.S., rather than weaker demand elsewhere.
Equinix plans to deploy 1 gigawatt of power between now and the end of 2029 and expects to have 2 gigawatts of land and power available after that period, Leonetti said. The company will continue to pursue land-and-power acquisitions opportunistically, he added, referencing its atNorth acquisition as an example.
Beyond physical infrastructure, Equinix is interested in smaller technology tuck-in acquisitions that can complement its interconnection offerings, Leonetti said. He described retail colocation, characterized by smaller footprints, dense ecosystems and higher returns, as the company’s primary focus, while xScale remains part of the portfolio.
On capital allocation, Leonetti said the company prefers debt financing and does not expect to need an equity issuance. He said Equinix has flexibility to delay capital expenditures if market conditions deteriorate and cited its relatively low leverage and ability to manage operating expenses as advantages.
While Leonetti acknowledged the possibility of a broader slowdown, he said the company currently sees no evidence of weakening demand or reduced investment by hyperscalers and neocloud providers. He said spending by those customer groups is 80% higher this year than in the prior year, according to his remarks.
About Equinix (NASDAQ:EQIX)
Equinix, Inc is a global digital infrastructure company that operates data centers and provides colocation, interconnection and related services. Its International Business Exchange (IBX) data centers allow businesses, cloud providers, network operators, financial institutions and government organizations to deploy and connect critical information technology infrastructure.
The company's services include space, power and physical security for customer equipment, as well as private connections to cloud and network providers.
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