Photo: Equinix, Inc. / Wikimedia Commons
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, its Asia-Pacific president says.
The company’s facilities typically range from 30 to 60 megawatts, below the roughly 100-megawatt threshold that U.S. proposals generally target, Cyrus Adaggra, Equinix’s Asia-Pacific president, said. The assessment is the company’s own; the proposals and their thresholds are not settled law.
“We will invest in markets where we see customer demand,” Adaggra said, adding that the company’s footprint typically falls under the thresholds regulators have discussed.
Capex rises on customer demand
Equinix has increased capital spending from about $2 billion a few years ago to $7 billion, driven by customer demand, Adaggra said. Annualized gross bookings exceeded $500 million for the first time in the third quarter, up 35% from a year earlier. The company serves about 60% of Fortune 500 companies, he added.
Potential restrictions on U.S. data center development could raise costs across the AI infrastructure supply chain, and slower U.S. construction could weigh on demand for semiconductors and other equipment, including from Asian suppliers, according to Russell Investments.
JBizNews Desk | Ashburn
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