How Equinix’s (EQIX) Advanced Nuclear Energy Partnerships Have Changed Its Investment Story

• Earlier this month, Equinix announced a series of agreements with leading innovative energy companies to secure next-generation nuclear and sustainable power solutions for its global data centers, including preorders with Oklo, Radiant, Rolls-Royce SMR, and Stellaria.
• This initiative positions Equinix at the forefront of data center energy innovation, combining advanced nuclear, micro reactor, and fuel cell technologies to address future reliability, efficiency, and sustainability needs for large-scale digital infrastructure.
• We'll examine how this major push into advanced nuclear partnerships could reshape Equinix's growth strategy and support its long-term energy resilience.

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Equinix Investment Narrative Recap

To own Equinix, you need to believe in sustained global demand for digital infrastructure and the company’s capacity to fund aggressive expansion despite elevated capital costs and execution risks. The recent push into next-generation nuclear and sustainable power agreements showcases a strong commitment to future-proofing Equinix’s data center operations, but is unlikely to materially change the immediate catalysts, occupancy and pricing strength driven by ongoing AI and cloud trends, or offset near-term risks from funding and project delivery volatility.

Among the recent announcements, Equinix’s significant agreements with Oklo, Radiant, Rolls-Royce SMR, and Stellaria to secure advanced nuclear and on-site power solutions stand out. This move supports the company’s drive to boost energy resilience and operational reliability, aligning with its diversified power strategy and the broader imperative to secure reliable electricity for data center growth, an important underpinning for the anticipated continued demand in AI and cloud workloads.

By contrast, investors should be aware that the scale of capital spending brings inherent risks if interest rates...

Read the full narrative on Equinix (it's free!)

Equinix's narrative projects $11.4 billion revenue and $1.7 billion earnings by 2028. This requires 8.5% yearly revenue growth and a $706 million earnings increase from $994 million today.

Uncover how Equinix's forecasts yield a $956.76 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Six private investors in the Simply Wall St Community peg Equinix’s fair value between US$758 and US$1,295, underscoring a wide range of views. While many see the company well positioned to capture rising demand for AI and cloud, persistent execution and funding risks can affect future margins and profitability, explore several perspectives for a fuller picture.

Explore 6 other fair value estimates on Equinix - why the stock might be worth as much as 65% more than the current price!

Build Your Own Equinix Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Equinix research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Equinix research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Equinix's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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