Equinix raised its annual adjusted core earnings forecast this week, betting on strong demand for its data centre operation services amid growing adoption of generative artificial intelligence technology.
Demand for companies offering data centre services has remained strong as more businesses look to incorporate generative AI into their products and transition their workloads to the cloud.
Generative AI processing needs high-power servers to train large language models. Those servers are located in data centres with advanced cooling systems and infrastructure to maintain smooth operations.
Demand for such infrastructure has helped companies such as Equinix and Digital Realty Trust, which lease out their data centres to clients.
Equinix acquired three data centres in the Philippines last month, in a bid to expand its presence in the high growth potential region of Southeast Asia.
The company expects adjusted core earnings to be between US$4.07 billion and US$4.13 billion for fiscal year 2024, compared with its previous forecast of US$4.04 billion to US$4.12 billion.
Analysts on average expect US$4.10 billion, according to LSEG data.
Equinix also forecast third-quarter revenue in the range of US$2.19 billion to US$2.21 billion, while analysts estimate US$2.21 billion.
The company's revenue stood at US$2.16 billion during the second quarter, in line with analysts' estimate.
Adjusted core earnings were US$1.04 billion for the three months ended June 30, up 4 per cent over the previous quarter.
Adjusted funds from operations — a key measure of cash flow — came in at US$9.22 per share, up 4 per cent sequentially.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
