Equinix and Digital Realty Q4 2024 Earnings Results
5 Key Takeaways from Digital Realty and Equinix’s Q4 2024 Earnings and AI-Driven Expansion
Digital Realty and Equinix’s latest earnings reports highlight record leasing, capital investments, and AI-driven infrastructure expansion.
As AI workloads continue to drive demand for scalable, high-density data center capacity, both companies are positioning themselves for long-term growth.
Here are the key takeaways:
1. Record Leasing Activity
Digital Realty reported $1 billion in total leasing activity for 2024, marking its highest annual leasing volume to date. Equinix delivered its strongest gross bookings performance in company history, with over 16,200 deals across 6,000+ customers.
Both companies are seeing sustained demand for colocation, hyperscale, and interconnection services as enterprises and cloud providers scale their digital infrastructure.
2. AI-Ready Infrastructure Expansion
Both companies are accelerating development to support AI-driven workloads. Digital Realty expanded its development pipeline to 7 GW, while Equinix leased 150 MW of Xscale capacity, nearly tripling investment capital in its hyperscale program.
These expansions reflect the increasing need for high-performance computing environments designed for AI training and inferencing.
3. Sustainability and Energy Efficiency Initiatives
Digital Realty launched a 120 MW solar power project in #SouthAfrica, reinforcing its commitment to renewable energy. Equinix improved power usage effectiveness (PUE) by 6%, reducing operational costs by $18 million.
With AI workloads consuming higher power densities, both companies are prioritizing efficiency improvements to enhance sustainability and cost-
effectiveness.
4. Emerging Market Growth
Equinix secured land for new data centers in #Lagos, #Jakarta, and #Singapore, expanding its presence in high-growth regions. Digital Realty saw record inter-region leasing activity, particularly in #EMEA and #APAC, where demand for AI and cloud services continues to rise.
These investments reflect a broader industry shift toward global expansion beyond traditional Tier 1 markets.
5. Increased Capital Expenditures for 2025
Digital Realty expects $3 billion to $3.5 billion in net CapEx, with gross CapEx reaching $4.5 billion. Equinix has projected $3.2 billion to $3.5 billion in CapEx, including $200 million for xScale investments and $250 million for recurring infrastructure upgrades.
With AI and cloud services driving record demand, both companies are committing significant capital to maintain leadership in digital infrastructure.
As competition in AI and cloud computing accelerates, Digital Realty and Equinix are scaling their operations to support the next wave of enterprise and hyperscale growth.
Their strategic investments in AI-ready infrastructure, energy efficiency, and global expansion will define the future of the data center industry.
#datacenters #ifcinfrastructure #AI