JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
REDWOOD CITY - Equinix, Inc. (NASDAQ:EQIX), a $76.7 billion market cap digital infrastructure giant generating $8.9 billion in revenue, is collaborating with several energy companies to develop new power sources for its global data centers, according to a press release issued Thursday. According to InvestingPro analysis, the company currently trades above its Fair Value, reflecting investor confidence in its expansion strategy.
The digital infrastructure company, maintaining a robust financial health score of "GOOD" according to InvestingPro metrics, has signed agreements with multiple next-generation nuclear technology providers as part of its strategy to address growing electricity demands and potential power constraints.
Equinix announced a preorder agreement to purchase 20 Kaleidos microreactors from Radiant and signed a Letter of Intent with ULC-Energy for a power purchase agreement of up to 250 MWe for data centers in the Netherlands. The company also revealed a pre-order power agreement with Stellaria for 500 MWe to expand data centers across Europe.
These new partnerships follow Equinix’s 2024 agreement with Oklo to procure 500MW of energy from its Aurora powerhouses, making Equinix the first data center operator to sign an agreement with a small modular reactor company.
The initiative comes as global electricity consumption is projected to grow 4% annually through 2027, according to data cited from the International Energy Agency. This growth is attributed to increased electrification, data center expansion driven by artificial intelligence, and industrial manufacturing resurgence.
In addition to nuclear energy, Equinix is expanding its deployment of Bloom Energy solid-oxide fuel cells to more than 100MW at over 19 data centers in six states to provide onsite power generation.
"Access to round-the-clock electricity is critical to support the infrastructure that powers everything from AI-driven drug discovery to cloud-based video streaming," said Raouf Abdel, Executive Vice President of Global Operations at Equinix.
The company stated it remains committed to sourcing 100% clean and renewable energy across its global portfolio by 2030 and has already achieved 96% renewable energy coverage globally. With revenue growing at 5.48% and an EBITDA of $3.77 billion in the last twelve months, Equinix demonstrates strong operational execution. For detailed insights and more exclusive metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Equinix Inc. reported a 5% year-over-year increase in revenue for Q2 2025, reaching $2.26 billion. The company’s adjusted EBITDA margins achieved a notable 50%, and it updated its 2025 revenue guidance to reflect a growth range of 7-8%, fueled by strong demand for digital infrastructure services. Following these earnings results, JPMorgan raised its price target for Equinix to $940, maintaining an Overweight rating due to solid performance, particularly in non-recurring revenue, adjusted EBITDA, and AFFO metrics. Meanwhile, JMP Securities reiterated its Market Outperform rating, setting a price target at $1,200, highlighting the clarification of the company’s capital expenditure plans.
CFRA, however, downgraded Equinix from Buy to Hold, citing a more conservative risk assessment, though it maintained a price target of $850. This move reflects cautious optimism despite acknowledging growth opportunities in the global data center market. These developments indicate varied analyst perspectives on Equinix’s financial health and future prospects.
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