30 Best and Worst Data Center Stocks

24. Equinix, Inc. (NASDAQ:EQIX)

Upside Potential: 13%

Number of hedge funds: 55

Equinix, Inc. (NASDAQ:EQIX) is a leading pure-play data center provider and holds the position as the largest third-party data center provider globally, with a significant market share. The company specializes in data centers, colocation, and internet connectivity, offering a neutral platform where networks can interconnect and share data traffic. Equinix operates 268 data centers, spanning 33.4 million gross square feet across 34 countries on all major continents.

Equinix, Inc. (NASDAQ:EQIX) has an impressive financial performance, boasting 87 consecutive quarters of revenue growth across different market cycles. The company’s execution is commendable, with a rapid increase in floor space that should benefit from further cloud adoption and hyperscaler demand. In October 2024, Equinix announced plans to triple their investment capital towards their xScale program by forming a joint venture worth over $15 billion with the Canada Pension Plan Investment Board and Singapore’s Government Investment Corporation. The xScale program’s data center capacity caters to the unique needs of hyperscale companies, providing massive floor space, networking capacity, and increased connectivity speeds to support the high demands of these large-scale operations.

Equinix, Inc. (NASDAQ:EQIX) has also committed to supplying 100% clean and renewable energy coverage, which should give it a competitive advantage given the large and surging energy requirements of data centers.