Guinness Global Real Assets Fund on Equinix Inc.
Thesis
Equinix is a Guinness holding in data-centre infrastructure. The company joined CPP Investments and Partners Group in completing the USD4 billion acquisition of Nordic data-centre operator atNorth. This adds exposure to colocation and bespoke data-centre capacity in a region suited to growing cloud and AI workloads. Guinness expects data-centre infrastructure to benefit as rising demand for data storage and AI creates an earnings opportunity for scarce physical assets.
“completed their USD4bn acquisition of atNorth”
Key risks
- Higher bond yields could weigh on capital-intensive real-estate valuations.
- A moderation in AI and cloud-infrastructure spending could weaken demand growth.
- Higher capital expenditure may not translate into attractive returns and earnings growth.