Equinix Sets Capex Target of $2.8 bn for 2024 in Data Center Push

Equinix, a leader in digital infrastructure solutions, has unveiled its revenue targets and financial outlook for the year 2024, signaling optimism and robust growth projections.
Equinix at Oracle OpenWorld 2017
The data center operator company aims to achieve revenues ranging between $8.793 billion and $8.893 billion in 2024, representing a significant 7 – 9 percent increase over the previous year.

For the first quarter of 2024, Equinix anticipates revenues to fall within the range of $2.127 billion to $2.147 billion, marking a 1 – 2 percent growth compared to the previous quarter.

The company also provided insights into its capital expenditure plans, with non-recurring expenditures, including xScale-related costs, expected to range between $2.570 billion and $2.800 billion, while recurring capital expenditures are projected to be in the range of $210 million to $230 million.

REVENUE

In 2023, Equinix demonstrated remarkable financial performance, reporting revenues of $8.188 billion, a 13 percent increase over the previous year. Operating income surged to $1.443 billion, marking a 20 percent increase, with an operating margin of 18 percent, driven by robust operational execution.

Net income for Equinix in 2023 reached $969 million, showcasing 38 percent increase over the previous year, attributed primarily to the company’s strong operational performance and other income streams, albeit partially offset by higher income taxes.

Charles Meyers, CEO and President of Equinix, in its earnings report, expressed his satisfaction with the company’s performance, highlighting the achievement of surpassing $8 billion in revenues and maintaining 21 consecutive quarters of revenue growth.

Charles Meyers emphasized Equinix’s strategic focus on digital transformation, particularly in an AI-driven landscape, underscoring the importance of Platform Equinix and its competitive advantages in facilitating hybrid and multicloud infrastructure for customers worldwide.

Equinix’s commitment to expansion and innovation is evident in its global footprint, comprising 260 data centers across 71 metropolitan areas in 33 countries. The company is currently undertaking 49 major builds in 35 markets, including 11 xScale builds, reflecting its dedication to meeting the evolving needs of its diverse customer base.

Furthermore, Equinix’s recent projects include the opening of 14 new data centers in various key metros, along with significant leasing activity for its xScale data center portfolio, driven by surging demand for hyperscale infrastructure supporting AI and cloud initiatives.

Equinix’s Channel program continues to gather momentum, contributing significantly to bookings and customer acquisition, with notable growth observed across various industry verticals and digital-first use cases, supported by partnerships with leading entities such as Avant, HCL, HPE, NVIDIA, and WWT.

Rajani Baburajan

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