Equinix (EQIX) investor relations material

Strategic growth and investment plans

• Plans to invest $20–$25 billion through 2029, with annual CapEx of about $1 billion, aiming for double-digit revenue growth and 5–9% AFFO growth, while maintaining margins above 52% by 2029.

• Growth will be funded through debt and cash generation, with a focus on maintaining a strong balance sheet and accelerating dividends.

• Emphasis on global expansion, with significant investments in the US, Asia, and Europe, and a focus on both organic and inorganic growth opportunities.

• Development timelines for new capacity can range from two to four years, impacting the realization of investment returns.

• Ongoing review of capitalization and cost of borrowing, with recent successful capital raises at favorable rates.

Geographic and market opportunities

• Heavy investment in the US, but also expanding in Asia (Singapore, Malaysia, Indonesia, India, Philippines, Thailand, Hong Kong) and the Middle East (Abu Dhabi, Dubai, Oman).

• xScale projects initially focused on the US, with plans to expand to major campuses in Asia and Europe.

• Market entry and expansion are opportunity-driven, with a focus on high-demand, hard-to-build markets.

• Strategic acquisitions and land preparation in emerging markets to support future growth.

Operational efficiency and customer retention

• Demand is strong, with supply being the main constraint; pricing remains firm in most markets.

• Investments in AI, analytics, and go-to-market strategies aim to optimize operations and reduce costs.

• Churn rates are stable at 2–2.5%, with efforts underway to reduce churn through analytics and improved customer engagement.

• Predictive analytics and AI are being leveraged to better understand and address customer behavior.