Equinix, Cisco and Nvidia deploy AI factories across 32 markets

Equinix is partnering with Cisco and Nvidia to build AI factory infrastructure across its global data center network, the companies said Tuesday.

Equinix Inc. is partnering with Cisco Systems Inc. and Nvidia Corp. to deploy AI factory facilities across its data center network, the companies said Tuesday, as enterprise AI workloads shift from pilots to production at scale.

"Enterprise customers are moving from AI pilots to full-scale deployment, and they need private, low-latency connectivity across clouds and networks to support inference workloads," Equinix management said.

The partnership combines Nvidia's AI computing platforms, Cisco's networking infrastructure and Equinix's colocation footprint. Equinix currently has 46 major projects underway across 32 markets, including six xScale projects, with more than 70 percent of retail expansion capital expenditure directed to major metros.

The AI factory push comes as Equinix reported first-quarter 2026 revenue of $2.444 billion, up 8 percent year over year, and raised its full-year guidance. The company now expects revenue of $10.144 billion to $10.244 billion and adjusted EBITDA of $5.165 billion to $5.245 billion. Equinix shares trade at about $1,055.85, roughly 12 percent below the analyst consensus target of $1,197.11.

AI Workloads Reshape Data Center Demand

Equinix said about 25 percent of its 2026 retail capacity expansion has already been presold, providing revenue visibility as new capacity comes online. The company's recurring revenue base, which grew 10 percent year over year in the first quarter, helps convert bookings into predictable cash flow.

The partnership extends Equinix's existing collaboration with Zenlayer on global AI infrastructure and its quantum-safe interconnect initiative with Sparkle across 20 data centers in Europe, the Americas and Asia. These moves position Equinix at the intersection of security, networking and AI-ready connectivity.

For investors, the AI factory partnership reinforces demand for Equinix's interconnection and colocation services at a time when the stock trades at a price-to-earnings multiple of 73.2. The shares have declined 2 percent over the past 30 days but remain about 26 percent below estimated fair value, according to Simply Wall St. One risk is that Equinix's debt is not well covered by operating cash flow, meaning funding further infrastructure expansion may require careful balance sheet management.

This article is for informational purposes only and does not constitute investment advice.