Financial Data and Key Metrics Changes - Equinix reported global Q3 revenues of approximately $2.32 billion, up 5% year-over-year, with recurring revenue growth stepping up 8% [21][22] - Adjusted EBITDA for Q3 was $1.15 billion, approximately 50% of revenues, reflecting an 8% increase year-over-year [22] - AFFO for Q3 was $965 million, up 12% year-over-year, significantly exceeding expectations due to strong operating performance [22][23] - MRR churn in Q3 decreased to 2.3%, with expectations for Q4 to remain within the 2%-2.5% range [22] Business Line Data and Key Metrics Changes - The company achieved record annualized gross bookings of $394 million in Q3, a 25% increase year-over-year [5][10] - Interconnection revenue grew 8% year-over-year to $422 million, driven by a 57% increase in Equinix Fabric bookings [11] - The company added 7,100 net interconnection connections in Q3, bringing the total to over 499,000 [11] Market Data and Key Metrics Changes - The company closed over 4,400 deals with more than 3,400 customers in Q3, indicating strong demand across various sectors [7][8] - Significant momentum was noted in key verticals such as automotive, financial services, and cloud and AI service providers [8] Company Strategy and Development Direction - Equinix aims to double its capacity by 2029, supported by recent land acquisitions in major metros [7][14] - The strategy includes three key moves: Serve Better, Solve Smarter, and Build Bolder, focusing on customer value, simplifying solutions, and accelerating capacity delivery [9][10][12] - The company is actively pursuing land acquisitions to support over 900 MW of retail and xScale capacity [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, emphasizing strong demand and the ability to secure land for expansion [27] - The company is focused on executing Q4 expectations and building momentum for 2026, with a strong pipeline for bookings [27][25] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet to support future growth [18][23] Other Important Information - Equinix's balance sheet was approximately $38 billion, with cash and short-term investments totaling $2.9 billion [23] - Capital expenditures for the quarter were approximately $1.14 billion, with a focus on opening new projects in key markets [24] Q&A Session Summary Question: How strategic are the new cloud on-ramps and what is being done to attract AI magnets? - Management highlighted their market-leading position in native cloud on-ramps and the importance of engaging with AI-focused companies to enhance connectivity [29][30] Question: Is the strength in pre-sales activity due to changes in sales strategy? - Management confirmed that the new pre-sales strategy has contributed to increased bookings, with significant activity in high-demand markets [34][39] Question: What is the pricing environment like and are prices firm? - Management indicated that pricing remains firm, with no dilution observed, and expressed confidence in the demand outlook for 2026 [46][52] Question: Can you provide details on the land acquisitions and their intended use? - Management stated that recent land acquisitions will primarily support xScale business, particularly in London and Chicago, while also considering retail needs [55][58] Question: What is the status of power availability for xScale projects? - Management confirmed that all current xScale projects have secured power, indicating no constraints on development [84][87] Question: How should investors view the annualized gross bookings and pre-sold gross bookings? - Management noted that while bookings can be volatile, the underlying demand remains strong, and they expect to meet Q4 targets based on current momentum [90][92]

Financial Data and Key Metrics Changes - Equinix reported global Q3 revenues of approximately $2.32 billion, representing a 5% increase year-over-year [18] - Monthly Recurring Revenue (MRR) growth was 8% year-over-year on a normalized and constant currency basis [4] - Adjusted EBITDA for Q3 was $1.15 billion, approximately 50% of revenues, up 8% year-over-year [19] - Adjusted Funds From Operations (AFFO) was $965 million, up 12% year-over-year, exceeding expectations [19] Business Line Data and Key Metrics Changes - Interconnection revenue grew 8% year-over-year to $422 million, driven by a 57% increase in Equinix Fabric bookings [10] - The company closed over 4,400 deals with more than 3,400 customers in Q3, indicating strong demand across various sectors [6] - Annualized gross bookings reached a record $394 million, a 25% increase year-over-year [4] Market Data and Key Metrics Changes - The Americas region showed significant strength, contributing to the overall revenue growth, while EMEA experienced some one-off impacts affecting margins [73] - The company opened its 77th market in Chennai, India, and added eight major projects across seven markets [12][21] Company Strategy and Development Direction - Equinix aims to double its capacity by 2029, supported by recent land acquisitions in key metros [5][52] - The strategy includes three key moves: Serve Better, Solve Smarter, and Build Bolder, focusing on customer value, simplifying solutions, and expanding capacity [8][10] - The company is actively pursuing land acquisitions to support over 900 megawatts of capacity, enhancing its ability to meet customer demand [12][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong demand and a robust pipeline for Q4 and beyond [25] - The company is focused on maintaining profitability while expanding capacity to meet increasing market demands [16] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet to support growth initiatives [16][47] Other Important Information - Equinix's cash and short-term investments totaled $2.9 billion, with net leverage at 3.6 times annualized adjusted EBITDA [20] - The company has issued approximately $9.5 billion in green bonds, with $7 billion allocated to eligible green projects [20] Q&A Session Summary Question: How strategic are the new cloud on-ramps and what is being done to attract AI magnets? - Management emphasized their market-leading position in native cloud on-ramps and the importance of attracting AI companies through strong customer relationships [28][30] Question: Is the strength in pre-sales activity due to changes in the sales approach? - Management confirmed that the new pre-sales strategy has contributed to increased bookings, with significant activity in high-demand markets [37][38] Question: What is the current pricing environment and expectations for 2026? - Management indicated firm pricing and confidence in demand, with a focus on revenue execution and cost management [44][50] Question: Can you provide details on the land acquisitions and their intended use? - Management stated that significant portions of the new land acquisitions in London and Chicago will be earmarked for xScale business, with flexibility in capacity allocation [52][53] Question: What is the confidence level regarding power availability for xScale projects? - Management assured that all current xScale projects have secured power, highlighting their strong relationships with utility providers [79]

Financial Performance - Record annualized gross bookings reached $394 million, a 25% increase year-over-year and a 14% increase compared to Q2 2025[11, 12] - Monthly recurring revenue (MRR) increased by 8% year-over-year on both an as-reported and normalized constant currency basis[12] - Q3 2025 revenues totaled $2316 million, reflecting a 3% QoQ and 5% YoY growth as-reported[18] - Adjusted EBITDA for Q3 2025 was $1148 million, with a 2% QoQ and 10% YoY increase as-reported[18] - Q3 2025 AFFO reached $965 million, showing a 1% QoQ decrease but an 11% YoY increase as-reported[18] Capacity and Expansion - Total developable capacity grew to approximately 3 GW, a nearly 50% increase from last quarter[15] - Land acquisitions across Amsterdam, Chicago, Johannesburg, London, and Toronto will support over 900 megawatts of retail and xScale capacity at full build-out[12] - The company owns 169 of 273 data centers, and owned assets generate 69% of recurring revenues[73, 51] Guidance - FY 2025 revenue guidance is $9208 - $9328 million[34] - FY 2025 adjusted EBITDA guidance is $4531 - $4611 million, with an approximate 49% margin[34] - Q4 2025 revenue guidance is $2411 - $2531 million[34] - Q4 2025 adjusted EBITDA guidance is $1187 - $1267 million, with a 49-50% margin[34]

Core Viewpoint - Equinix has lowered its annual revenue forecast due to delays in closing a deal and adverse foreign exchange impacts, despite expectations from Wall Street for the company to benefit from increased spending on AI infrastructure [1] Group 1: Company Performance - Equinix is experiencing delays in closing a deal, which has contributed to the lowered revenue forecast [1] - The company is facing negative impacts from foreign exchange rates, further affecting its financial outlook [1] Group 2: Market Expectations - Wall Street anticipates that Equinix will benefit from the growing investment in AI infrastructure, indicating a potential for future growth despite current challenges [1]

Group 1 - There is a significant investment boom in AI infrastructure, indicating that current interest rates may not be as restrictive as previously thought, potentially leading to further rate cuts and concerns about market bubbles [1] - Major US companies are heavily investing in data centers to leverage AI technology, which is expected to have a substantial impact on their business operations [2][3] - The spending on data centers is not particularly sensitive to interest rates, as it is driven by long-term assessments of productivity and investment potential in the AI sector [3] Group 2 - The company is utilizing various data sources to track inflation and growth in the absence of government data, including price statistics and wage inflation data from ADP [4][5] - The Beige Book is also referenced as a valuable source of information, providing insights into economic conditions, although it does not replace government data [5]

Data Center Demand & Capacity - Current data center construction is insufficient, meeting less than 50% of the actual need [1] - The industry is not building enough data centers to meet the growing demand [1] AI Infrastructure Imperative - Countries need to prioritize building AI infrastructure, similar to roads and railways in the past [2] - Sovereign AI infrastructure is crucial for retaining companies within a country [2] Data Center Lifespan & Obsolescence - Data center chips have a limited lifespan of approximately 5 years [1] - Data center chips will change in 5 years [1] Geopolitical Strategy - The US government recognizes the importance of AI data centers and power infrastructure [2] - Every country requires AI data centers [2]

I'm here at Amazon's new data center campus in northern Indiana. One of the most ambitious infrastructure projects the company has ever attempted. Now, these buildings, including this one being constructed just behind me, are part of Project Rainer, a multi-billion dollar effort to expand the compute backbone for artificial intelligence.Now, inside these data centers, Amazon is installing hundreds of thousands of its own AI chips developed with Anthropic, the startup behind the Clawed Chatbot. Now, the site ...

Core Insights - Applied Digital (APLD) and IREN Limited (IREN) are focusing on next-generation data center infrastructure for high-performance computing (HPC) and artificial intelligence (AI) workloads, addressing the growing demand for scalable computing solutions [1][2] - The global AI market is projected to reach $500 billion by 2027, driven by increased adoption across various sectors such as healthcare, finance, transportation, and manufacturing, which is favorable for both companies [1] Applied Digital (APLD) Highlights - APLD's HPC Hosting business is designed to support high-power density applications, with the Polaris Forge 1 facility set to scale up to 1 gigawatt (GW), with the first 100-MW facility operational by Q4 2025 [3] - APLD has secured a 15-year lease agreement with CoreWeave for 400 MW of critical IT load at Polaris Forge 1, with anticipated lease revenues of approximately $11 billion, indicating a strategic shift from cryptocurrency mining to AI-focused infrastructure [4] - The Zacks Consensus Estimate for APLD's fiscal 2026 revenues is $280.9 million, reflecting a growth of 30.4% from fiscal 2025 [5] - APLD's fiscal 2026 loss is estimated at 31 cents per share, an improvement from the previous estimate of 34 cents [11] IREN Limited Highlights - IREN is on track to achieve $1.25 billion in annualized revenues, with $200-$250 million expected from AI Cloud by December 2025, and plans to scale GPU installations significantly [6][7] - IREN has installed over 60,000 NVIDIA Blackwell GPUs and is transitioning from bitcoin mining to AI, with a new liquid-cooled data center planned [7] - IREN anticipates $500 million in AI Cloud annualized run-rate revenue by Q1 fiscal 2026 [7] - The Zacks Consensus Estimate for IREN's fiscal 2026 earnings is 70 cents per share, down 39.1% over the past 60 days [10] Stock Performance and Valuation - APLD shares have surged 49.7% in the past month, outperforming IREN's 33% gain, indicating stronger investor momentum for APLD [8][11] - Both APLD and IREN are considered overvalued, as indicated by a Value Score of F [14] Conclusion - APLD is expected to benefit from the CoreWeave partnership and the increasing demand for AI infrastructure, while IREN's growth is tempered by bitcoin price volatility and modest revenue growth prospects [15]

CoreWeave Inc.’s $9 billion proposed tie-up with data center provider Core Scientific Inc. is increasingly in doubt ahead of a key shareholder vote Thursday, based on trading signals from the market. https://t.co/TjOQNyaRK3 ...

Google is working with NextEra to reopen the Duane Arnold Energy Center in Iowa to power the tech companies data centers. https://t.co/Yq2ppS1doj ...