Is Equinix's (EQIX) Next-Gen Nuclear Power Deal Shifting Its Data Center Growth Trajectory?

• In August 2025, Equinix announced collaborations with leading next-generation nuclear and fuel cell technology providers, securing over 1,250MW of future clean power capacity to support its data centers’ global energy needs and AI-driven expansion.
• These initiatives position Equinix as an early mover in adopting advanced energy solutions, addressing both sustainability commitments and the operational challenge of rising data center energy demand.
• We'll explore how Equinix’s groundbreaking nuclear energy agreements may reshape its long-term growth prospects and data center competitiveness.

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Equinix Investment Narrative Recap

To be a shareholder in Equinix, one must believe in the ongoing expansion of digital infrastructure and AI-driven workloads, fueling demand for global data centers, while trusting management to balance aggressive growth with sustainable capital decisions. The recent announcement of next-generation nuclear and fuel cell partnerships directly targets Equinix's most pressing short-term catalyst, meeting power requirements for AI at scale, while partially addressing a key risk: execution bottlenecks from energy access. However, exposure to elevated interest rates and sustained high leverage remains material for investors to watch.

Of the recent developments, the appointment of Dr. Yanbing Li to the Board stands out for its relevance. Her extensive experience scaling cloud and infrastructure platforms at Datadog and Google could prove valuable as Equinix integrates new energy technologies and manages rapid AI-centric expansion. Board-level expertise in these areas may help mitigate operational risk, but it does not remove exposure to financing and capital market conditions that also influence performance.

In contrast, it’s important for investors to be aware that even with advances in clean energy procurement, ongoing reliance on large-scale capital expenditures and higher net leverage means the risk of rising interest costs and tighter capital markets is far from eliminated...

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

Equinix's outlook anticipates $11.4 billion in revenue and $1.7 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 8.5% and an increase in earnings of roughly $706 million from the current $994 million level.

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

Exploring Other Perspectives

Simply Wall St Community fair value estimates for Equinix range widely from US$758 to US$1,299 across six analyses, some well below current pricing. While many focus on Equinix’s AI-driven growth potential, the challenge of managing execution and energy access underpins broader uncertainty in future performance. Explore these contrasting outlooks to see how your view compares.

Explore 6 other fair value estimates on Equinix - why the stock might be worth just $758.00!

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 3 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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