Techdamentals
Oct 15, 2:50 AM
$EQIX Equinix has guided to higher capital spending through 2029 to expand data center capacity, and management expects its leverage to rise as that spending ramps.
Leverage rising means debt grows faster relative to a year's cash earnings than before, a direct sign more of this buildout is being funded by borrowing rather than cash on hand.
Equinix also expects its blended cost of capital to climb, meaning each new dollar of financing gets more expensive, the same dynamic behind the broader AI debt worry that surfaced on October 14.
Full explainer, plain English: https://www.youtube.com/watch?v=-SzxuI8dDUM
Educational, not advice.
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