Data Center Giant Equinix Ups Its 2026 Forecast Behind Robust Q2

Equinix significantly increased its forecasts and expectations for 2026 after posting another record-heavy quarter on the back of artificial intelligence demand and more data center construction.

The Redwood City, Calif.-based data center real estate investment trust (REIT) generated $2.63 billion in second-quarter revenue, up 7 percent from $2.44 billion in the first quarter and 16 percent from $2.26 billion a year earlier. Equinix said operating growth and one-time fees from the company’s xScale hyperscale business boosted its results.

Net income reached $477 million, up from $415 million in the first quarter and $367 million during the second quarter of 2025. Net income attributable to common shareholders totaled $479 million, or $4.83 per share.

Funds from operations (FFO), REITs’ main cashflow measure, rose to $854 million from $758 million in the previous quarter and $689 million a year earlier. Equinix delivered $424 million in annualized gross bookings, its highest second-quarter total and second-highest quarterly volume on record. Bookings increased from $378 million during the first quarter and $345 million in the second quarter of 2025. The company also generated approximately $110 million in presales.

“The vast majority of our largest deals were driven by AI workloads,” CEO Adaire Fox-Martin said during the company’s Wednesday earnings call. She added that Equinix’s revised outlook “reflects a market opportunity that has materially improved over the past 12 months.”

Stabilized data centers remained approximately 82 percent utilized, in line with the first quarter. The stabilized portfolio generated $1.89 billion in revenue, up 7 percent annually, while producing a 27 percent cash return on gross property investment, compared with 24 percent a year earlier.

Equinix ended the quarter with 52 projects underway across 33 markets after adding nine since April, including new projects in Chicago and abroad. Capital expenditures rose to approximately $1.58 billion from $1.26 billion in the first quarter and $989 million a year earlier, with roughly 90 percent of the latest spending directed toward capacity expansion.

Management is also pulling more than 7,000 retail cabinets — or server storage racks — forward from 2027 into the fourth quarter of this year, effectively doubling the number of cabinets expected to be delivered during the second half.

The xScale portfolio signed 134 megawatts of leasing in the Americas during the quarter, including one transaction that contributed approximately $120 million in nonrecurring fees. Equinix has 196 megawatts of xScale capacity under development — 182 megawatts of which is leased.

Equinix reported $224 million in real estate acquisitions and $348 million in asset-sale proceeds during the first half of 2026.

The REIT now expects revenue this year of $10.21 billion to $10.29 billion, with annual growth of 11 to 12 percent, up from its previous 10 to 11 percent forecast. Adjusted FFO guidance increased to between $4.24 billion and $4.30 billion, while capital expenditures jumped to between $4.71 billion and $5.69 billion from approximately $3.8 billion.

“This is the largest single guidance raise in the history of our company,” Fox-Martin said.

Equinix also raised its 2027-to-2029 outlook, forecasting annual revenue growth of 10 to 13 percent, annual capital expenditure of $5 billion to $7 billion and adjusted FFO-per-share growth of 9 to 12 percent. More than 80 percent of the planned expansion will be concentrated in its 25 largest global markets.

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