Equinix Raises 2026 Forecasts and Long-Term Outlook Amid Strong AI-Driven Demand

Equinix, a Redwood City, California-based data center real estate investment trust (REIT), has substantially increased its financial forecasts for 2026 and beyond following a record-setting second quarter. The company's revenue reached $2.63 billion, a 16% increase year-over-year, with net income at $477 million. Funds from operations (FFO), a key REIT metric, rose to $854 million.

CEO Adaire Fox-Martin attributed the strong performance primarily to surging demand for artificial intelligence (AI) workloads, which drove the majority of large deals. Equinix achieved its highest second-quarter gross bookings on record, totaling $424 million, and generated approximately $110 million in pre-sales.

The REIT is actively expanding its global footprint, with 52 projects underway across 33 markets, including new developments in Chicago. Capital expenditures for capacity expansion increased to $1.58 billion in Q2. Management plans to accelerate the delivery of over 7,000 retail cabinets from 2027 into late 2026. Equinix now projects 2026 revenue between $10.21 billion and $10.29 billion, reflecting 11-12% annual growth, and has raised its FFO and capital expenditure guidance significantly. This revised outlook, the largest in the company's history, also includes double-digit annual revenue growth forecasts through 2029, with over 80% of expansion focused on its 25 largest global markets. For developers and investors, this highlights the sustained growth and investment opportunities in the data center sector, particularly driven by AI.