| Purpose-built AI data centers are facilities composed of networked computers, computing infrastructure and storage systems that leverage AI chips. They can run multiple computations at once as AI applications sift through enormous stores of data. These AI-specific data centers require massive investments in terms of capital and time. So the companies that have already begun transitioning their infrastructure to meet the demands of AI have a huge first-mover advantage over their competitors - and a large moat. Spending in the global AI infrastructure market (which includes data centers) is expected to reach $422.55 billion by 2029 to meet the growing demand. That equates to a compound annual growth rate of 44% over the next six years, according to research firm Data Bridge Market Research. Very nice. My favorite way to play data centers is Equinix (Nasdaq: EQIX), one of the largest data center operators in the world. It has 251 data centers... across 70 metro areas... in 32 countries... on six continents. Its portfolio of data center assets includes... - Network dense: 2,000-plus networks, 100% of Tier 1 network routes
- Cloud dense: 3,000-plus cloud and IT service providers
- Interconnected ecosystems: 460,000-plus total interconnections.
That's an impressive portfolio... and it's boosting the company's financials. Going back to 2000, the company has increased its annual revenue every single year. It went from just $13.02 million in 2000 to $7.26 billion in 2022. And over the past 12 months, revenue has increased once again, coming in at $7.95 billion. Most recently, the company reported third quarter results that included revenue of $2.06 billion, of which $1.96 billion was reoccurring revenue. On the bottom line, net income for the third quarter was $276 million, which represented a year-over-year increase of 30%. And here's the best part... Not only is Equinix tied to one of the fastest-growing industries in the world and generating consistently increasing revenue... but it has also posted eight years of cash dividend growth since becoming a real estate investment trust (REIT) in 2015. Speaking of the dividend, the company recently increased its fourth quarter dividend to $4.26 per share, a 25% increase from the third quarter. On an annual basis, the company will pay out $14.49 per share in 2023, a 19% year-over-year increase. I like Equinix's prospects as a solid AI pick-and-shovel play with plenty of growth and income ahead of it... but I've got my eye on some smaller plays with huge potential. I've just released details on three tiny AI companies that I think will CRUSH Nvidia, Microsoft (Nasdaq: MSFT) and Alphabet (Nasdaq: GOOGL)... with up to 2,100% in upside targeted in the next three years. Go here for all the details. Cheers, Shah | 
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