NY Data Center Moratorium Seen as Boon for Equinix, Digital Realty
EQIX sits 41% above its 52-week low of $720.62.
Summary
New York became the first state to impose a moratorium on new hyperscale data centers, a move that Wall Street analysts say will benefit existing data center REITs like Equinix and Digital Realty by making their portfolios scarcer and more valuable. Oppenheimer raised long-term profit targets for both, citing unprecedented demand and a shift toward smaller collocation facilities suited for AI inference. Guggenheim upgraded Digital Realty to Buy with a $200 price target, arguing that political opposition makes its existing footprints 'effectively irreplaceable.' Morgan Stanley also sees the REITs as well-positioned due to their focus on smaller, less controversial collocation centers. Equinix reports Q2 earnings on July 29, with analysts expecting 14% FFO growth.
At the time of this announcement, EQIX was trading at $1,018.68 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $100.5B. The 52-week trading range was $720.62 to $1,128.68. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.