Welcome to Earnings Frontier, our new series where we cut through the noise of quarterly financial reports to get straight to what matters for the data center industry. Today, the spotlight is on a pair of companies whose recent earnings calls offered valuable insights into the market's current trajectory: Equinix and Modine.
On one hand, we have the colocation giant, Equinix, which continues to demonstrate its enduring strength as a foundational pillar of the digital economy. Their latest results underscore a familiar story of robust customer engagement, strategic capacity expansion, and a steadfast focus on interconnection. The numbers speak to the company's ability to capitalize on the sustained demand for cloud and AI infrastructure, all while successfully navigating a complex and competitive landscape.
Then there's Modine, a company whose name might not be as synonymous with data centers as Equinix's, but whose recent performance is a powerful testament to the critical role of cooling in the age of AI. Their earnings call highlighted a strategic pivot toward data center cooling technologies, with strong growth in their Climate Solutions segment. The company's commentary reveals a deep understanding of the market's evolving needs, with a keen focus on high-efficiency, advanced cooling strategies that are becoming non-negotiable for next-generation workloads.
In the following segments, we'll dive into the details of these two contrasting, yet equally illuminating, earnings reports, exploring the key metrics, strategic takeaways, and forward-looking statements that are shaping the future of digital infrastructure.
Equinix Outlines Three-Pronged Strategy for 2025 Double-Digit Revenue Growth
CEO Adaire Fox-Martin described growth from acquisitions, new projects, customer AI adoption, and long-term strategies, saying, “We were built for this moment.”
Key Takeaways
- Leaders at Equinix, Inc. announced the acquisition of three data centers in Manila and has 59 projects in 34 metro areas, including key markets such as Chicago, London, Jakarta, and Montreal.
- During the company’s Q2 earnings call, executives revealed the firm closed 4,100 deals across more than 3,300 customers, and added 6,200 net interconnections, reaching more than 492,000.
- The company also appointed a new EVP Chief Customer and Revenue Officer and a new President, Americas.
- Equinix reported strong Q2 results, with revenue of $2.256 billion (up 4 percent YoY) driven by strong recurring revenue growth and solid operating flow-through.
- Net income was $368 million (up 22 percent).
During a recent call with investors and analysts, Equinix, Inc., the global digital infrastructure giant providing colocation and interconnection data centers, outlined what CEO and President Adaire Fox-Martin described as a three-pronged approach—Serve Better, Solve Smarter, Build Bolder—to achieving an estimated 58 percent growth in 2025 revenue.
Notably, the company has 59 major projects underway in 34 metros across 25 countries and added nine new projects since Q1 across Bangkok, Chennai, Chicago, Dallas, Jakarta, Kuala Lumpur, London, Montreal, and Silicon Valley.
In addition, Equinix closed more than 4,100 deals with more than 3,300 customers and generated $345 million in annualized gross bookings. It added 6,200 net interconnections, bringing its total to more than 492,000.
For the quarter, capital expenditures were about $990 million, including recurring capital expenditures of $55 million. Fox-Martin emphasized that capital expenditure are for capacity expansion to increase revenue, and that the majority of Equinix's investments over the next five years will include purchasing land, building new IBX data centers and digital product offerings, and investing in its Equinix xScale product joint ventures.
“We were built for this moment,” Fox-Martin said, pointing to rising global demand for artificial intelligence (AI), hybrid and multi-cloud architectures, and digital interconnection.
In addition, two new key executives were appointed in Q2:
- Shane Paladin joined the company as Executive Vice President (EVP) and Chief Customer and Revenue Officer, overseeing customer experience and sales, marketing, customer care and experience, and revenue operations.
- Arquelle Shaw was promoted to President, Americas, responsible for management, strategy, and growth in the region.
What the Q2 Numbers Show
Chief Financial Officer Keith D. Taylor said Q2 revenues reached $2.256 billion, up 4 percent year over year. Colocation solutions generated $1.585 billion in revenue, and interconnection revenue topped $400 million for the first time. Its Equinix Fabric product outperformed, with provisioned capacity now more than 100 terabits (Tb).
These results followed a strong Q1 in which Equinix exceeded revenue and bookings expectations, prompting an upward revision of its full-year guidance.
Forward Projections
For the third quarter of 2025, leaders expect revenues to range between $2.314 and $2.334 billion, an increase of 3 percent at the midpoint over the previous quarter.
Management raised 2025 revenue guidance by $58 million to between $9.233 and $9.333 billion total, an increase of about 6 percent to 7 percent over the previous year and maintaining a 7% to 8% normalized and constant currency growth rate. Recurring capital expenditures are expected to range between $272 and $292 million.
Interconnected is a new video and podcast series from Equinix diving into the digital infrastructure that keeps our world online. With expert guests and real-world insights, episodes explore the systems driving AI, automation, quantum computing, and more.
Modine Unveils $100 Million to Expand U.S. Data Center Capabilities, Lifts 2026 Outlook
Modine's expansion plan includes new manufacturing facilities and increased production capacity for critical equipment used for data center cooling, driven by unprecedented demand from U.S. hyperscale and colocation data center operators.
Key Takeaways
- Modine is investing $100 million to scale U.S. manufacturing, engineering, and product development to meet surging AI-driven data center demand.
- The plan includes opening a new facility near Dallas, expanding operations in Grenada, Mississippi, and possibly repurposing existing facilities in Wisconsin and Missouri.
- The company’s strategy puts emphasis on its Climate Solutions, global data center cooling, and modular platforms for hyperscale and colocation customers.
- Modine is also scaling up internationally to serve growing demand for advanced cooling in global hyperscale and colocation data centers.
- Company leaders expect data center business revenue to reach $2 billion by fiscal 2028.
Global thermal management solutions provider Modine is investing $100 million over the next 12 to 18 months for its Airedale by Modine data center cooling products to accelerate growth in the booming U.S. data center market, fueled by AI and digital infrastructure demand.
The investment will fund acquisitions, manufacturing expansions, and enhanced engineering, product development, and testing capabilities. The strategy spans four U.S. sites, including a new facility in the Dallas area, an expansion of the Grenada, Mississippi plant, and potential repurposing of Performance Technologies facilities in Franklin, Wisconsin, and Jefferson City, Missouri. The $100 million initiative is in addition to the $38 million Grenada investment announced in June.
During a recent earnings call, Modine’s President and CEO Neil D. Brinker announced completion acquisitions of AbsolutAire, L.B. White, and Climate by Design International (CDI).
Specifically, Modine’s leaders are focused on higher growth in their Climate Solutions businesses that provide climate-controlled solutions and components for applications including data centers and heating, ventilation, air conditioning, and refrigeration (HVAC&R) systems.
They’re also implementing integration and cost management strategies within its Performance Technologies business segment, which designs and manufactures air- and liquid-cooled technology for vehicle, stationary power, and industrial applications.
Beyond the U.S. the company also is expanding data center globally, investing in scalable, integrated cooling solutions for hyperscale and colocation operators, and developing a modular data center platform for key global customers.
Brinker said the investments are behind the company’s upward revision to its fiscal 2026 guidance, now forecasting 10% to 15% sales growth—up from 2% to 10% previously. Modine expects its data center business to generate up to $2 billion in revenue by fiscal year 2028.
First quarter 2026 sales increased by 3% to $682.8 million, compared with $661.5 million in the prior year. Gross profit increased 2% to $165.4 million, although gross margin slipped 40 basis points to 24.2, primarily due to lower sales and higher materials in Performance Technologies.
For the full year, Climate Solutions sales are expected to grow 25% to 35%, with data center sales climbing more than 45%.
In the Liquid Cooling Espresso video series from Airedale by Modine, Richard Burcher, the company's Product Manager – Liquid Cooling, offers a brief overview of current data center cooling market trends.
About the Author
Theresa Houck
Theresa Houck is an award-winning journalist with 30+ years of experience. She writes about markets and economic trends for Endeavor Business Media on topics including healthcare, cybersecurity, AI, manufacturing, energy, data centers, and more. With a master’s degree in communications from the University of Illinois Springfield, she previously served as Executive Editor for four magazines about sheet forming and metal fabrication at the Fabricators & Manufacturers Association, where she also oversaw circulation, marketing, and book publishing. Most recently, she was Executive Editor for The Journal From Rockwell Automation custom publication on industrial automation.
Matt Vincent
A B2B technology journalist and editor with more than two decades of experience, Matt Vincent is Editor in Chief of Data Center Frontier.
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