Equinix's $10B AI Revenue Projection: Dividend Goldmine?
💡 Key Takeaway
Equinix is positioned to capitalize on the AI infrastructure boom with accelerating bookings and sustainable dividend growth.
The Data Center Landlord Cashing In on AI
Equinix, a global data center REIT, reported $9.2 billion in revenue for 2025 and projects over $10 billion for 2026. The company operates 280 data centers across every continent except Antarctica, serving over 10,500 companies including 60% of the Fortune 500.
Bookings surged dramatically in late 2025, with Q3 bookings growing 14% over Q2 and Q4 bookings jumping 20% over Q3. This acceleration signals strong demand for data center space as AI adoption expands.
Beyond basic colocation services, Equinix generates secondary revenue through its Equinix Fabric Network, which provides direct, private connections to major cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure.
The company's adjusted funds from operations (AFFO) grew 12% in 2025 to $3.7 billion, supporting its dividend program. Equinix has raised its dividend for 11 consecutive years, with the payout growing 10% year-over-year since 2024.
Why This AI Infrastructure Play Matters for Investors
Equinix serves as a critical tollbooth for the AI revolution, benefiting from massive cloud provider spending without the capital intensity of building new data centers. With Amazon alone projecting $200 billion in capex for 2026, the infrastructure demand is undeniable.
The company's unique position as a neutral interconnection hub gives it pricing power and customer stickiness. Businesses prefer renting Equinix space rather than spending $7-12 million per megawatt to build their own data centers.
Equinix's dividend growth story remains compelling despite the stock's 9% price appreciation over the past year. The yield actually increased from 1.81% to 2.45% due to substantial dividend hikes.
The accelerating bookings growth suggests Equinix's $10 billion revenue projection for 2026 may be conservative if AI adoption continues at its current pace. The company is essentially collecting rent on the digital economy's most valuable real estate.
For investors seeking AI exposure without betting on specific technology winners, Equinix offers infrastructure-level participation with dividend income and lower volatility than pure-play AI stocks.
Source: The Motley FoolAnalysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Equinix represents a strong buy opportunity for investors seeking AI infrastructure exposure with dividend growth.
The company's accelerating bookings, strategic partnerships with all major cloud providers, and sustainable dividend growth create a compelling risk-reward profile. Equinix benefits from AI capex without the execution risk of developing AI technology itself.
What This Means for Me
