This global REIT is on the bank straight to the Asian AI wave
Equinix’s AI Ready Jakarta facility establishes critical infrastructure ahead of Indonesia’s digital boom competitors.
With 98% customer retention and operating 270 data centers worldwide, Equinix shows outstanding stability in the digital infrastructure space.
Despite massive modernization investments, Equinix maintains its financial strength with nearly $3 billion in cash and $7.6 billion available liquidity.
equinix(NASDAQ: EQIX) A powerhouse in digital infrastructure and part of a new class of innovative Real estate investment trust (REIT) Laying the foundation for becoming the future of real estate investment. It has a strong history of leveraging international technology trends that traditional REITs cannot conform. With strategic expansion in Indonesia, Equinix has placed itself for explosive growth, and Wall Street is beginning to attract attention.
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Asia has become the global epicenter of digital demand, and Indonesia is leading the charges. It attracts large investments in cloud computing, artificial intelligence (AI), and fintech. By entering the market early and actively scaling, Equinix is developing a strategic advantage that competitors are difficult to match.
The Indonesian data center market is projected to grow at $37.9 billion by 2030 from a combined annual growth rate (CAGR) of 8%. Like the Cloud Giants Amazon Web services and alphabetGoogle Cloud has already announced large investments, but their platform needs physical infrastructure to work. That’s why Equinix’s expansion to Jakarta is so strategic.
The newly opened data center is not a regular server farm. Equinix is built to support intensive computing tasks such as training and running AI systems, creating the critical backbone needed to grow Indonesia’s digital business. This could make Equinix one of Tech’s most valuable players.
Average Analyst’s price target is Equinix at $1,009, 10% higher than its present, giving us a nod to its future-looking strategy and the expanding market.
In addition to Indonesia’s assets, Equinix operates 270 data centers across five continents and 35 countries. We have a great track record with our customers and hold 98%. As of the first quarter of 2025, Equinix reported over $2.1 billion in annual adjusted revenue before interest, taxes, depreciation and amortization (ebitda). This powerful combination of global scale, customer loyalty and reliable revenue is exactly the same as the stage for Equinix’s successful transition to Jakarta.
It’s not the best delivery REIT, but Equinix pays 2% investors each year. But it’s not too bad considering that its growth trajectory looks more like a high-tech company than a traditional REIT.
But Equinix faces potential pressure. Total capital expenditures for 2025 are projected to be between $3.4 billion and $3.7 billion, with no spending that accounting for about 95% of that. This important investment is partly attributable to the need to modernize legacy data centers to meet new levels of demand. These upgrades are essential, but represent substantial financial commitments that could impact short-term profitability.
That said, Equinix ended the first quarter of 2025 with a cash and cash equivalent of approximately $2.95 billion and total available liquidity of $7.6 billion. The balance sheet looks sturdy enough to fund the expansion without putting shareholders at undue risk.
Geopolitical tensions are also surrounding investor concerns. Equinix operates worldwide, and requires navigating regulatory, financial and political risks in emerging markets. However, these risks appear to be managed well by the company’s leadership, with its long-term leases, high renewal rates and a diverse customer base providing stability.
Some investors believe that REITs are too dangerous and do not provide sufficient value. These perceptions are often based on declines in traditional sectors such as retail and office space. That’s where high-tech-powered REITs like Equinix come in. There is no longer a time when investing in real estate means buying something on the ground. Now you’re buying in the cloud.
Comparing it with your favorite friends Digital Real EstateEquinix still stands out. It has a stronger international footprint, a more premium client base, and better historic uptime. If you’re looking for a REIT that combines growth potential with resilience in the digital age, Equinix is definitely the best pick.
AI is as powerful as the infrastructure behind it, and Equinix is building a digital backbone where the future runs. Jakarta may be just one dot on the map, but it shows that Equinix is at the forefront of a global shift.
With revenue, global and pioneering foothold in high-growth markets like Indonesia, this REIT could become one of the most important tech stocks in the next decade. Investors looking to benefit from the global expansion of AI without the volatility of pure play technology stocks may want to show Equinix the details. It may not be a flashy choice, but it is in solid state and could be the smartest upgrade this year’s portfolio makes.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Philippa Maine has no position in any of the stocks mentioned. Motley Fool has been working and recommending Alphabet, Amazon, Digital Realty Trust, and Equinix. To Motley’s fool Disclosure Policy.
