20 August 2025 | 11:59PM HKT GDS Holdings (GDS): First Take: 2Q25 results beat on better MSR; DayOne's EBITDA beat with robust committed capacity growth; Buy GDS Holdings (GDS/9698.HK) reported 2Q25 results that beat GSe and Visible Alpha Consensus Data on both revenue and adj. EBITDA (+12%/11% yoy, respectively), primarily thanks to the stable yoy MSR trend. While AI demand was relatively quiet in 2Q25 due to chip uncertainties as per management, GDS believes that customers are waiting for new technologies ...

Equinix (EQIX) Conference Summary Company Overview - **Company**: Equinix - **Date of Conference**: August 12, 2025 - **Speaker**: Ralph Abdo, EVP of Global Operations Key Points Company Growth and Performance - Equinix's revenue has increased approximately 5 times since 2012, growing from just under $2 billion to current levels [7] - The market cap has also expanded significantly, from $10 billion to approximately $75 billion [8] Strategic Focus - Recent strategic priorities have shifted towards the build side of operations, focusing on talent, energy, supply chain, and capacity planning [11][12] - The "Build Bolder" initiative aims to enhance planning, strategy, and investment profiles for future capacity [12] Changes in Deal Sizes - Enterprise deal sizes have increased significantly, with current projects requiring larger construction capacities [13] - Historical building sizes have evolved from 10 megawatts to a range of 30 to 60 megawatts per building, with multi-building campuses now being developed [14][19] Rack Density and Cooling Solutions - Average rack density has increased from 6 kW per cabinet five years ago to 12 kW or more currently, reflecting the demand for higher performance [22] - The design of data centers has improved to better manage concentrated heat loads, moving away from raised floors to a plenum design [24][26] Capacity Delivery and Phasing - Equinix is increasing the size of phases in terms of power delivery, with plans for 10 megawatts or higher in medium-sized markets and up to 50 megawatts in high-demand areas like Ashburn [33][34] Capital Expenditure (CapEx) Considerations - The increase in enterprise deal sizes and the demand for hyperscale capacity are driving higher CapEx forecasts [36][37] - The company is preparing for a hybrid cloud model, anticipating future demand driven by AI and digital transformation [38][39] Construction Management - Differences in construction management for retail versus hyperscale projects include project size and customer involvement, necessitating a more robust program management approach [41][43] - The complexity of building today has increased, requiring more program management talent and resources [45][46] Utility Engagement and Power Procurement - The approach to securing power has changed significantly, with larger power requirements necessitating more complex planning and infrastructure [50][51] - Equinix is now building its own substations and connecting at high transmission voltage levels to meet increased power demands [52][53] Liquid Cooling and Retrofit Strategies - Equinix is retrofitting existing data centers to support liquid cooling by tapping into existing chilled water systems [78] - The retrofit process is designed to monetize underutilized space within data centers, which are typically over 80% occupied [82] Future Considerations - The company is actively monitoring changes in utility regulations and the impact of large electrical loads on the grid, particularly concerning GPU usage [88][90] - There is an ongoing evaluation of how to manage spikes in demand and the associated infrastructure costs [89][90] Additional Insights - The hybrid model being developed at the Hampton site allows for flexibility in utilizing both retail and hyperscale capacities [62][63] - The operational efficiency of managing larger campuses is expected to be significantly better than standalone data centers [69] This summary encapsulates the key insights and strategic directions discussed during the Equinix conference, highlighting the company's growth, operational strategies, and future challenges in the data center industry.

Summary of American Tower Conference Call Company Overview - **Company**: American Tower Corporation - **Event**: KeyBank Technology Leadership Forum - **Date**: August 11, 2025 Key Points Industry and Company Strategy - American Tower is transitioning from a passive tower business to a more technical role, focusing on data centers and satellite investments [4][5] - The acquisition of CoreSite in 2021 is a significant part of the capital plan, emphasizing the convergence of satellite and terrestrial networks [5][6] - The company is exploring "power as a service" in Africa, indicating a shift towards more integrated services [5] Data Centers and Edge Computing - The company is developing edge facilities, with a focus on the Raleigh data center, which aims to prove the concept of distributed computing [8][10] - Initial investments in small edge facilities did not meet expectations, leading to a reevaluation of strategies [12][13] - Power constraints in centralized locations are driving the need for distributed edge facilities, with Raleigh designed to accommodate modular power increments [14][15] AI and Technological Transformation - The company is in the early stages of AI adoption, focusing on improving productivity and harmonizing datasets from various acquisitions [27][28] - AI is seen as a game changer for operational efficiency, with a focus on orchestrating AI agents across use cases [30] Satellite and Tower Business - Investments in AST Space Mobile are viewed as complementary to the tower business, enhancing connectivity in underserved areas [32][34] - The company believes that towers will remain essential infrastructure, even with the rise of satellite technology [34][36] Spectrum Opportunities - The recent tax bill allows the FCC to auction spectrum, which is seen as a significant opportunity for American Tower [42][43] - Key spectrum bands of interest include upper C band and six gigahertz, which are crucial for future growth [46][48] - The company anticipates that the auction process will enhance capacity and drive new deployments [51][52] Future Outlook - The transition to 5G has been slower than expected, but the new tax incentives may accelerate carrier investments [56][57] - The integration of telecommunications and computing at the edge is expected to enhance user experiences and drive future growth [61] Additional Insights - The company is focusing on modular data center designs to meet the growing demand for power and efficiency [15][21] - There is a recognition of the need for shared resources in the community to support local tech companies [24] - The potential for AI to transform business operations is acknowledged, with ongoing efforts to leverage AI for better decision-making [28][30]

Core Insights - OpenAI has confirmed a significant deal with Oracle for data center services, which is expected to generate $30 billion annually [1][2][4] - The deal involves 4.5 gigawatts of capacity as part of the Stargate project, a $500 billion initiative involving OpenAI, Oracle, and Softbank [4] - OpenAI's annual recurring revenue has recently reached $10 billion, indicating substantial growth [8] Company Details - Oracle's SEC filing revealed the $30 billion cloud deal, which led to a surge in its stock price and increased the wealth of its founder, Larry Ellison [2][3] - The deal represents a significant portion of Oracle's cloud services, which totaled $24.5 billion for all customers in fiscal 2025 [3] - Oracle's capital expenditures are projected to reach nearly $50 billion over two years, primarily for data centers [6] Project Implications - The construction of the data center at the Stargate I site in Abilene, Texas, will be a costly endeavor for both OpenAI and Oracle [5] - The power capacity of 4.5 gigawatts is equivalent to the output of two Hoover Dams, sufficient to power approximately four million homes [4] - OpenAI's commitment to Oracle's services is three times its current annual revenue, highlighting the scale of the investment [8]

Core Insights - Digital Realty Trust (DLR) is expected to report second-quarter 2025 results on July 24, with anticipated year-over-year growth in revenues and funds from operations (FFO) per share [1][9] Group 1: Financial Performance - In the prior quarter, DLR reported a core FFO per share of $1.77, exceeding the Zacks Consensus Estimate of $1.73, driven by steady leasing momentum and improved rental rates despite higher operating expenses [2][3] - The Zacks Consensus Estimate for rental revenues in the upcoming quarter is $987.5 million, reflecting an 8.2% increase from $913.0 million in the same quarter last year [5] - The total revenue estimate for the second quarter is $1.44 billion, indicating a year-over-year increase of 6.4% [5][9] Group 2: Market Position and Growth Drivers - DLR benefits from a global footprint of 308 data centers across more than 50 metropolitan areas, with a diverse tenant base including major companies like IBM, Oracle, and Meta Platforms [4][9] - The rising demand for data centers, driven by digital transformation, cloud computing, and artificial intelligence, is expected to enhance DLR's leasing activity and revenue growth [3][9] Group 3: Analyst Expectations - The consensus estimate for DLR's quarterly FFO per share has remained stable at $1.74, indicating a year-over-year growth of 5.5% [6] - DLR currently has an Earnings ESP of +0.38% and a Zacks Rank of 2 (Buy), suggesting a favorable outlook for a potential FFO beat this quarter [7][9]

Core Insights - Iron Mountain Incorporated (IRM) shares have increased by 20.9% over the past three months, significantly outperforming the industry average increase of 6.4% [1][8] - The company is expected to benefit from strong cash flows in its storage and records management business, alongside a focus on expanding its data center operations [1][4] - Analysts have a positive outlook on IRM, with the Zacks Consensus Estimate for 2025 adjusted funds from operations (AFFO) per share revised upward to $5.01 [2] Business Performance - Iron Mountain generates a steady stream of recurring revenues primarily from fixed periodic storage rental fees, which are typically earned on a monthly basis based on the volume of records stored [3] - The company is expanding its data center segment, with a strong pipeline totaling 1.3 GW expected to be fully developed, and management anticipates leasing 125 MW by 2025 [4] Growth Strategy - Iron Mountain employs an aggressive expansion strategy that includes acquisitions and developments to enhance organic growth in storage revenues [5] - The company is focusing on capital recycling by monetizing non-core assets and engaging in joint ventures and sale-leaseback transactions, which helps fund its development pipeline [5] Financial Position - The company maintains a healthy balance sheet with total liquidity of approximately $2.1 billion as of March 31, 2025, and a net lease-adjusted leverage of 5.0X, the lowest since its REIT conversion in 2014 [6] - Solid dividend payouts are a key attraction for REIT shareholders, with a five-year annualized dividend growth rate of 4.73%, indicating sustainability in the increased dividend [9]

Core Insights - Prologis reported Q2 2025 core FFO of $1.46 per share and occupancy at 95.1%, exceeding internal forecasts despite market challenges [1] - The company raised its core FFO guidance for FY2025 to $5.75–$5.85 per share, an increase of $0.45 at the midpoint, and development start guidance to $2.25–$2.75 billion for 2025 [1][9] Development and Leasing Activity - First-half development starts reached a record $1.1 billion, with nearly 65% of new starts in Q2 2025 being build-to-suit projects [3][4] - The leasing pipeline increased by 19% year over year, totaling 130 million square feet, with strong demand for larger deals and activity from third-party logistics providers [5][6] Market Position and Future Outlook - Despite a U.S. vacancy rate of 7.4%, supply constraints persist, with a market-to-replacement-cost rent spread exceeding 20%, indicating potential for future cash flow uplift [7][8] - Management projects same-store NOI growth of 3.75%–4.25% net effective and 4.25%–4.75% cash for 2025, with rent changes for new and renewing leases expected to average in the low to mid-50% range [9]

Core Insights - American Tower (AMT) is positioned to benefit from increased investments in 5G networks by wireless carriers, supported by long-term leases that ensure stable cash flows [1][4] - The company is diversifying its revenue streams through a growing portfolio of data centers, capitalizing on the rise of Artificial Intelligence (AI) [1][6] Group 1: Industry Positioning - The demand for wireless connectivity is increasing due to next-generation technologies such as edge computing, autonomous vehicles, and IoT, leading to heightened investments by wireless service providers [3] - American Tower's portfolio includes nearly 149,000 communication sites globally, strategically positioning the company to capture incremental demand from these trends [3][8] Group 2: Business Model and Financial Strategy - American Tower operates on a resilient business model with non-cancellable, long-term tower leases, primarily with major wireless carriers, ensuring substantial and recurring revenue [4] - The company is restructuring its portfolio by divesting non-core assets in high-risk markets, focusing on low-risk developed markets, with plans to allocate over 75% of its $1.5 billion discretionary spending towards these regions in 2025 [5] Group 3: Growth Initiatives - To leverage the booming data center market driven by cloud computing and Big Data, American Tower plans to invest over $600 million to expand its data center footprint in 2025, with a reported data center revenue growth of 8.4% in Q1 2025 [6][8] - The company has a robust balance sheet with $11.7 billion in total liquidity as of March 31, 2025, and has achieved a net leverage target of 5X EBITDA [9] Group 4: Shareholder Value - American Tower has a disciplined capital distribution strategy, having increased its dividend 14 times with an annualized growth rate of 9.07%, indicating a commitment to sustainable shareholder value [10]

Company Overview - Equinix (EQIX) shares increased by 5.3% to close at $785.11, supported by higher trading volume compared to normal sessions, following a 16% decline over the past four weeks [1] - The upcoming quarterly funds from operations (FFO) for Equinix is expected to be $9.21 per share, reflecting a slight year-over-year decrease of 0.1%, while revenues are projected to reach $2.26 billion, marking a 4.5% increase from the previous year [2] Market Sentiment - Increased investor optimism in Equinix is linked to a favorable operating environment, despite the unchanged consensus estimate for FFO per share over the last 30 days [2][3] - The stock's price typically does not continue to rise without trends in FFO estimate revisions, indicating the importance of monitoring future performance [3] Industry Comparison - Equinix is categorized within the Zacks REIT and Equity Trust - Retail industry, where Agree Realty (ADC) has a consensus FFO per share estimate of $1.06, showing a year-over-year increase of 1.9%, but ADC has a Zacks Rank of 4 (Sell) [3][4]

Core Viewpoint - The data center industry is poised for significant expansion driven by the increasing demand for artificial intelligence (AI) capabilities, yet Equinix has faced a notable decline in its stock price recently, particularly after its analyst day event [1][4]. Group 1: Company Performance - Equinix's share price has decreased by almost 16% week-to-date as of Thursday night, following its analyst day [1]. - The company provided guidance for its adjusted funds from operations (AFFO), forecasting annual growth of 5% to 9% from 2025 through 2029 [2]. Group 2: Market Dynamics - The heavy demand for AI necessitates substantial expansion in data center capacity, compelling companies like Equinix to invest heavily now to benefit in the future [4]. - Analysts have become more bearish on Equinix, with several institutions downgrading their recommendations on the stock [4]. Group 3: Investment Perspective - The current capital expenditure requirements are seen as justified due to the urgent demand for robust AI functionality, which data center operators must address upfront [5]. - The recent decline in Equinix's stock price presents a buying opportunity for long-term investors, despite anticipated short-term profitability challenges [6].