Equinix Reports Higher Earnings, Revenues and Capacity

Data center developers and landlords are booked and busy.

Equinix reported that its developable capacity has grown almost 50 percent from last quarter, providing a clean runway for the data center-focused real estate investment trust to achieve its goal of doubling its capacity for the properties by 2029.

In the third quarter, Equinix delivered more than $1.1 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a company-level proxy for net operating income, which is 10 percent higher than the same time last year. The firm reported $2.3 billion in third-quarter revenue, which is up 5 percent year-over-year. 

The REIT’s operating income of $474 million was 12 percent higher compared to last year, and its $965 million in funds from operations was 11 percent higher than the third quarter of 2024. Equinix also reported $1.1 billion in capital expenditures in the three-month period. The full-year total is expected to range between $3.8 billion and $4.3 billion.

When it comes to utilization, Equinix delivered a record amount of annualized gross bookings of $394 million, up 25 percent compared to the same period in 2024, and 14 percent higher than last quarter. And Equinix’s traditional leases include pricing escalators of 2 to 5 percent.

“We achieved significant momentum in Q3, closing over 4,400 deals with more than 3,400 customers,” CEO Adaire Fox-Martin said Wednesday during the firm’s earnings call. “This volume reflects continued demand for a wide variety of latency-sensitive AI and non-AI workloads, supporting significantly increased data residency and sovereignty requirements.”

Equinix has 58 major projects underway in 34 markets across the globe, and more than 90 percent of development is on owned land or owned buildings with long-term ground leases.

As such, Equinix in the third quarter closed land deals in key metros, including Amsterdam, Chicago, Johannesburg, London and Toronto. Further, Equinix entered its 77th market in Chennai, India, with an investment of $69 million, and also opened in Washington, D.C., Miami, Montreal, Hong Kong and Monterrey, Mexico.

“We have ample pipeline to achieve our Q4 bookings targets and to build momentum heading into 2026,” Fox-Martin said.

“Hyundai Motor Group runs its proprietary H Cloud platform at Equinix … improving service quality for over 10 million connected car subscribers worldwide,” she said. “ING is migrating its core banking infrastructure in Germany to Equinix. … Nitori, Japan’s largest furniture retailer, connects its Osaka and Tokyo operations with low-latency access to Oracle Cloud, supporting its global expansion plans. … We saw continued momentum with key AI-related enterprises including Ally Bank, Bristol Myers Squibb, Nebios and Groq, among others.”

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.