Equinix Sets More Records with Big Q1, Raises Outlook on AI Momentum

The world’s largest digital real estate investment trust accelerated into 2026, fueled by an insatiable appetite for artificial intelligence and cloud infrastructure.

Extending the momentum from a record-setting 2025, Equinix, the Redwood City, Calif.-based data center development firm, reported more leasing and higher revenue growth thanks to the largest first-quarter annualized gross bookings in company history at $378 million. The first three months of 2026 prompted Equinix leadership to hike full-year guidance across the board.

“Q1 was also the largest quarter of total sales activity in our history; inclusive of annualized growth bookings and pre-selling activity, total sales activity was up more than 35 percent year-over-year,” CEO Adaire Fox‑Martin said Wednesday on the company’s earnings call.

The REIT also reported double-digit annual growth in revenue of $2.44 billion, while net income climbed to $415 million, a 21 percent jump from the same period last year. Adjusted funds from operations (AFFO) — Equinix’s primary cash flow metric — reached $1.07 billion, up 12 percent year-over-year.

“Quarterly AFFO surpassed the $1 billion mark for the first time, increasing 11 percent year-over-year, and AFFO per share was $10.79, up 10 percent year-over-year,” Chief Financial Officer Olivier Leonetti said.

The company completed more than 3,800 transactions with more than 3,100 customers during the quarter, including hyperscalers and AI users. Equinix also reported that its monthly recurring revenue (MRR), a primary indicator of long-term value for the REIT, grew 12 percent year-over-year.

And roughly 60 percent of Equinix’s largest deals in the first quarter were tied to AI.

“A year ago, (conversations with customers) were about piloting AI,” Fox‑Martin said. “Now, our conversations are focused on enterprise-wide adoption at scale. … Eight of the top 10 AI model providers and four of the top five neo-clouds are actively expanding with Equinix.”

Stabilized data centers in Equinix’s portfolio were approximately 82 percent utilized and generated 6 percent year-over-year revenue growth, the firm said.

On the investment front, Equinix continued to scale aggressively. Total capital expenditures reached $1.26 billion in the quarter, including $1.22 billion of nonrecurring expansion tied to new data center development and capacity buildout. The company also announced a definitive agreement with Canada Pension Plan Investment Board to acquire atNorth.

Despite the heavy investment, the company maintained a strong balance sheet, with approximately $7.1 billion in available liquidity.

Equinix now operates 281 data centers across 77 markets globally, with roughly 3 gigawatts of developable capacity supported by land under control.

Looking ahead, Equinix raised its 2026 guidance across several key metrics. The company now expects revenue between $10.14 billion and $10.24 billion, representing roughly 10 to 11 percent annual growth, while adjusted EBITDA is projected to reach up to $5.25 billion. AFFO guidance was also increased to a range of $4.20 billion to $4.28 billion, for a roughly 9 to 11 percent increase year-over-year.

With AI workloads accelerating demand, the company will continue doubling down on both capacity expansion and product innovation. However, that strategy comes with rising capital intensity. Total expected capital expenditures for 2026 are projected to reach roughly $4.1 billion. 

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