Digital infrastructure giant Equinix (NASDAQ: EQIX) reported strong third-quarter results and announced a major expansion of its AI capabilities through a new $15 billion joint venture, marking its 87th consecutive quarter of revenue growth

Equinix Revenue Climbs 7% as AI Drives Data Center Demand

The company posted revenues of $2.2 billion for the quarter ended September 30, representing a 7% increase year-over-year. Net income reached $297 million, or $3.10 per share, while adjusted EBITDA rose 1% quarter-over-quarter (QoQ) to $1.048 billion.

Although net income grew by 7% year-over-year from $276 million reported in the same quarter last year, it declined on a quarter-over-quarter basis. In the second quarter of 2024, the company’s net income was slightly higher, reaching $301 million.

Equinix also revealed plans to nearly triple its xScale data center portfolio through a joint venture with CPP Investments and GIC. The partnership will focus on building new facilities across multiple US campuses to support growing AI and hyperscale workloads.

“Our 87th consecutive quarter of revenue growth was also a record-breaking one for gross bookings, with strong results across our three regions,” said CEO Adaire Fox-Martin. “We see continued robust demand for AI-enabling digital infrastructure from a highly diverse set of customers of varying sizes, industries, and regions.”

Operational Highlights

The company's global expansion continues with 57 major projects currently underway across 35 markets in 22 countries. These include 13 xScale projects that will add more than 22,000 cabinets of retail capacity and over 100 megawatts of xScale capacity by the end of 2025.

Equinix's xScale portfolio has already secured 385 megawatts in global leasing commitments, with nearly 90% of its operational and under-construction capacity now leased. The company recently acquired a 200-acre land parcel in Atlanta for its first multi-hundred-megawatt xScale campus.

Financial Outlook

For the full year 2024, Equinix raised its guidance, projecting revenues between $8.75 and $8.79 billion, representing approximately 7% growth over the previous year. The company expects adjusted EBITDA of $4.09 to $4.13 billion, maintaining a 47% margin.

“This $36 million increase from previously issued guidance is due to $12 million of better-than-expected operating performance and a $24 million positive foreign currency benefit when compared to the prior guidance rates,” the company commented.

The digital infrastructure provider also strengthened its sustainability commitments, issuing over $750 million in green bonds during the quarter, bringing its total green bond issuance to approximately $5.6 billion.

In Q2 2024, the publicly listed digital infrastructure firm executed a major leadership transition. President and CEO Charles Meyers moved into the role of Executive Chairman, while Adaire Fox-Martin, President of Google Cloud Go-to-Market, assumed the position of President and CEO. Additionally, Merrie Williamson, a seasoned executive with over 20 years of experience at Microsoft and Intel, joined Equinix as Chief Customer and Revenue Officer (CCRO) a month earlier.