Equinix EQIX recently announced that the utility-scale solar and battery storage development arm of Trina solar Co., Ltd, Trinasolar International System Business Unit ("ISBU"), has signed a 20-year renewable energy Power Purchase Agreement (PPA) with Equinix. This deal also marks Equinix’s first renewable energy PPA in Japan.

This strategic move aligns with Equinix’s long-term sustainability goals and its commitment to reducing carbon emissions across its operations.

Under the agreement, Trinasolar ISBU will supply solar power generated from the 30MW Yufutsu Abira Project in Hokkaido, Japan. The project is expected to supply electricity in the third quarter of 2028.

Per Kuniko Ogawa, MD and president of Equinix Japan, "Reliance on digital technologies driven by innovations like AI continues to expand rapidly, increasing data centers' energy demands. Equinix is committed to addressing these energy challenges as sustainably as possible. Our first PPA in Japan empowers our customers to confidently pursue aggressive decarbonization objectives, knowing the energy consumption of their data center operations at Equinix is covered by renewable energy."

EQIX: In a Snapshot

Going forward, Equinix’s global data center portfolio is well-poised to benefit from the solid demand for interconnected data center infrastructure. Enterprises and service providers’ continued efforts to integrate AI into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the near term.

In the past six months, shares of this Zacks Rank #3 (Hold) company have declined 5.9% compared with the real estate market’s fall of 3.9%.Zacks Investment Research

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Stocks to Consider

Some better-ranked stocks to consider from the broader REIT sector include Cousins Properties CUZ and Welltower WELL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has been raised 1.8% over the past month to $2.79.

The Zacks Consensus Estimate for WELL’s current-year FFO per share has moved three cents northward over the past week to $4.93.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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Equinix, Inc. (EQIX):Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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