How Equinix has found a niche in the multitrillion-dollar AI data center boom
Nvidia announced a new data center deal with Equinix and Together AI on Wednesday to help enterprise customers with open-model inference.
TL;DR
- Equinix, a colocation facility provider, offers data center space, power, cooling, and security for over 10,500 customers.
- The company has secured a deal with Nvidia and Together AI to provide customers with a flexible way to run AI models on open-source cloud platforms, focusing on inference.
- Equinix's stock is up 33% this year, with a market cap of $100 billion, making it the most valuable data center REIT.
- While hyperscalers focus on massive facilities, Equinix's strength lies in its distributed network of smaller, urban facilities important for inference and high-speed communication.
- Some analysts and investors express concerns about Equinix's ability to scale for gigawatt-level demand and its profitability compared to newer, AI-focused players.