businessLIVE
Equinix points to smaller facilities as scrutiny of U.S. data center construction grows
Equinix says its smaller facilities could be less exposed to U.S. data center construction curbs.
Key points
- Equinix facilities typically range from 30 to 60 megawatts, versus the roughly 100-megawatt threshold U.S. proposals generally target.
- Equinix capital spending rose from about $2 billion a few years ago to $7 billion, driven by customer demand.
- Annualized gross bookings exceeded $500 million for the first time in the third quarter, up 35% from a year earlier.
Why it matters. Potential U.S. restrictions could raise construction costs and delay data center projects, and could weigh on demand for semiconductors and other infrastructure equipment, according to Russell Investments.
Equinix says its smaller data centers could be less exposed to possible U.S. construction restrictions, according to Asia-Pacific president Cyrus Adaggra. Its facilities typically range from 30 to 60 megawatts, versus the roughly 100-megawatt threshold U.S. proposals generally target. BMI says about 53% of projected U.S. hyperscaler growth sits in states whose newly elected governors could impose limits.
Latest updates
Equinix points to smaller facilities as scrutiny of U.S. data center construction grows
Equinix says smaller data centers may be less exposed to U.S. restrictions as scrutiny of AI infrastructure grows. Inside one of Equinix's internal operations at Equinix Data Center in Ashburn, Virginia, on May 9, 2024. Amanda Andrade-Rhoades | The Washington Post | Getty Images Equinix says its smaller data centers could be less exposed to potential U.S. construction restrictions as regulators scrutinize the rapid buildout of artificial intelligence infrastructure. The company's facilities typically range from 30 to 60 megawatts, compared with the roughly 100-megawatt threshold that Cyrus Adaggra, Equinix's Asia-Pacific president, said is generally targeted by U.S. proposals. "We will invest in markets where we see customer demand, and because we have a footprint that is typically less than 100 megawatts, we tend not to fall and be caught by the legislation or the regulation, which is typically at about 100 megawatts in the U.S.," Adaggra told CNBC's " Squawk Box Asia. " His comments come as the U.S. midterm election results have heightened concerns that new restrictions on data center development could delay projects and raise construction costs. About 53% of projected growth in the U.S. hyperscaler development pipeline is concentrated in states where newly elected governors could impose restrictions on data center construction, according to a Wednesday report from BMI, a Fit.