Equinix forecasts annual sales above estimates on AI data center demand

Feb 11 (Reuters) - Equinix EQIX.O forecast annual revenue above estimates on Wednesday, betting on strong artificial intelligence-linked demand for the largest data center operator's services, sending its shares up over 6% in extended trading.

As corporations race to integrate generative AI, the surge in demand for specialized data centers to power the technology has benefited Equinix.

The company expects revenue between $10.12 billion and $10.22 billion for 2026, compared with estimates of $10.07 billion, according to data compiled by LSEG.

Equinix also forecast first-quarter sales between $2.50 billion and $2.54 billion, above estimates of $2.46 billion.

"Equinix plays an essential role helping businesses connect and manage increasingly distributed AI, cloud and networking infrastructure. This is a source of long-term competitive advantage," CEO Adaire Fox-Martin said in a statement.

The company has doubled down on expanding capacity, investing in new data centers in emerging markets like Chennai, India and Jakarta, Indonesia, to capture accelerating demand.

It reported revenue of $2.42 billion for the fourth quarter, missing estimates of $2.46 billion.

Results in the December quarter were modestly impacted by the timing of a transaction related to leasing one of its sites, which is now expected to close in early 2026, the company said.

Net income from continuing operations stood at $264 million in the quarter, compared to a year-ago loss of $14 million.