Equinix points to smaller facilities as scrutiny of U.S. data center construction grows

Equinix said it will shift toward smaller data center facilities as scrutiny of U.S. AI infrastructure construction intensifies, arguing that lower-density projects face less exposure to potential restrictions than the large, power-intensive campuses favored by hyperscalers. The data center REIT’s stance comes amid growing political and regulatory attention to the electricity demand and land use associated with AI buildouts. Equinix is positioning its smaller-footprint model as a way to keep expanding capacity while limiting regulatory risk. Investors will watch whether the approach affects the company’s growth pipeline and capital spending plans, and whether other operators follow suit as policymakers weigh new rules on data center development.