Equinix and CPP Investments Acquire atNorth in $4B Nordic AI Data Center Expansion

What happened

Equinix has entered a joint agreement with CPP Investments to acquire atNorth, a leading Nordic data center operator, for $4 billion, betting on the region's AI boom. This move aligns with Equinix's strategy to expand its development pipeline and capture AI-driven demand, as highlighted in the DeepValue report. However, the acquisition adds to the company's already high capex burden of $3.655B–$4.155B for 2026, exacerbating leverage and funding risks noted in the report. The report emphasizes that EQIX's valuation depends on timely execution of its build-out, including closing the Hampton xScale lease and avoiding power delays, which this deal does not directly address. While diversifying into the Nordic market supports long-term growth, it introduces new regulatory and infrastructure challenges, increasing execution complexity.

Implication

The atNorth deal expands Equinix into the Nordic region, potentially enhancing revenue from AI workloads and supporting its growth narrative. However, it increases the 2026 capex burden, which could strain AFFO/share targets and elevate leverage concerns, as the report flags high net debt to EBITDA of 5.07x. Investors should monitor how this impacts the Hampton lease closure by mid-2026, a key thesis breaker per the report, and whether it diverts resources from core execution challenges. New market entry may introduce additional power and permitting hurdles, compounding existing risks highlighted in the report. Ultimately, while strategically aligned, the acquisition does not alleviate the capital intensity or timing volatility that underpins the WAIT rating, requiring continued caution.

Thesis delta

The acquisition of atNorth does not fundamentally shift the investment thesis but adds a layer of growth opportunity and risk. It underscores Equinix's aggressive expansion into AI markets, yet it reinforces the critical need for managing capex and execution timelines, keeping the WAIT rating intact until the Hampton lease closes and power constraints are addressed.