Philippa Main, The Motley Fool

Sat, Jun 21, 2025, 2:55 PM5 min read

• Equinix's AI-ready Jakarta facility establishes critical infrastructure ahead of competitors in Indonesia's digital boom.

• Operating 270 data centers globally with 98% customer retention, Equinix demonstrates remarkable stability in the digital infrastructure space.

• Despite heavy modernization investments, Equinix maintains financial strength with nearly $3 billion in cash and $7.6 billion in available liquidity.

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Equinix (NASDAQ: EQIX) is a powerhouse in digital infrastructure and part of a new class of innovative real estate investment trusts (REITs) laying the groundwork to become the future of real estate investing. It has a strong history of capitalizing on international technology trends that traditional REITs can't match. With a strategic expansion in Indonesia, Equinix is positioning itself for explosive growth, and Wall Street is beginning to take notice.

Asia is becoming the global epicenter of digital demand, and Indonesia is leading the charge. It's attracting major investments in cloud computing, artificial intelligence (AI), and fintech. By entering the market early and scaling aggressively, Equinix is developing a strategic advantage that will be tough for competitors to match.

Indonesia's data center market is projected to grow at a compound annual growth rate (CAGR) of 8% to $3.79 billion through 2030. Cloud giants like Amazon Web Services and Alphabet's Google Cloud have already announced major investments, but their platforms need physical infrastructure to function. That's what makes Equinix's expansion into Jakarta so strategic.

Its newly opened data center is no ordinary server farm. Built to support intensive computing tasks like training and running AI systems, Equinix is creating the critical backbone necessary for digital business growth in Indonesia. This could make Equinix one of tech's most valuable players.

The average analyst price target sees Equinix at $1,009, 10% percent higher than it currently sits, a nod to its forward-looking strategy and savvy market expansion.

In addition to its Indonesian assets, Equinix operates 270 data centers across five continents and 35 countries. It has a great track record with its customers, retaining 98% of them. As of Q1 2025, Equinix reported over $2.1 billion in annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This strong combination of global scale, customer loyalty, and reliable earnings is exactly what sets the stage for Equinix's move into Jakarta to be a success.