Fox-Martin says Singapore is one of Equinix's most important global markets and that continued investment, including SG6, reflects its central role in the digital economy.
Equinix has been investing in Singapore for nearly 25 years, and our new facility will further expand our presence as the neutral exchange where enterprises connect to the clouds, networks and partners they need to innovate and grow. Singapore is one of our most important markets globally, and our continued investment here is a testament to the central role it plays in the digital economy.
Fox-Martin says Equinix demand is strong, broad-based and durable, with no customer above 2.5% of revenue.
I'll start with demand. It's strong, it's broad-based and it's durable. We have a unique purview to this. We serve customers across nearly every industry and workload, and no single customer accounts for more than 2.5% of our revenue.
Fox-Martin argues constrained colocation capacity means Equinix is at the very early stage of durable pricing strength.
So we believe that we're at the very early stage of durable pricing strength going forward.
She says industry capex is focused elsewhere, leaving colocation capacity short of demand.
From an environment perspective, though, it is fair to say that we are in an exceptionally strong environment and particularly as it relates to colocation because much of the CapEx in our industry is focused elsewhere, there isn't enough capacity to satisfy the demand that we see in the market.
Fox-Martin says Equinix's smaller, diversified builds reduce regulatory and execution risk.
Our new retail builds are sized for these use cases, generally 60 megawatts or less, and they are substantially smaller than the large scale campuses drawing the most regulatory attention. We also don't depend on any single build to meet our growth objectives. We have 48 projects across 32 markets currently in progress.
Fox-Martin describes the Georgia deal where Equinix funds grid infrastructure to protect ratepayers and secure power.
Equinix will fund the new substation and transmission lines our campus requires and cover all costs undertaken by the utility on our behalf. This protects local ratepayers whilst giving us reliable long-term access to the power we need to grow.
She sees data center project cancellations as an opportunity that makes scarce capacity more valuable.
If there are a number of projects canceled, then it only makes what is already scarce capacity, much more of a scarce resource. And particularly today, the vast majority of the CapEx in the industry, as you mentioned, is focused on the wholesale side, enterprises are truly growing their multi-cloud hybrid private environments.
Fox-Martin says neoclouds are shifting toward inference and enterprise customers, making Equinix a natural partner, while the cohort is under 2% of MRR.
what we're seeing is a transformation with the neos to looking at inference as an opportunity and enterprise as a much broader base of customers for them to execute against. And in those transformations, Equinix is quite a natural partner for them.
She warns that the neocloud segment has over 100 providers and will produce winners and losers.
There's over 100 providers now in this segment, lots of different business models, and we're absolutely certain that there's going to be winners and losers as this plays out.
Fox-Martin explains the Inference Exchange with NVIDIA and Together AI lets enterprises access 200 open models and avoid lock-in.
With the Inference Exchange, this is a partnership with NVIDIA. NVIDIA will provide the compute. We provide the space power interconnection, the ecosystem. Together AI is the first inferencing platform in. They provide the inferencing layer.
She says Fabric One, with AWS and Google Cloud as partners, automates networking from weeks to minutes for multicloud and agentic use.
For us, Fabric One is really about enhancing the platform. It will allow networking to occur in minutes what used to take weeks to put together with a whole variety of different items that you had to go and separately procure can now be done in minutes.
Fox-Martin says Equinix may intentionally churn low-priced, low-interconnection customers to mark pricing to market.
it is possible that we may choose to do selective churns where we may choose to churn out with intention a customer that's operating at a particular price point and perhaps low interconnection or network density and churn in a customer that has some of the opposite parameters.
Fox-Martin says Equinix posted double-digit growth in interconnection and recurring revenue, accelerated capacity to meet broad demand, and launched Fabric One and Inference Exchange for enterprise workloads.
We delivered double-digit growth across the key metrics that drive long-term value creation, including interconnection and monthly recurring revenue, and we accelerated capacity to meet broad-based demand. We also unveiled Equinix Fabric One and Equinix Inference Exchange to enable enterprise customers to run, connect, and orchestrate their most critical workloads.