Printed Circuit Board

Spoiler alert: this Blog post is not about AI (or not very much). Listen to Equinix – as we did at their biannual capital markets event last week – and the world of technology can be thought of in much more basic terms. As the world’s largest owner of digital independent infrastructure (data centres and interconnections), what Equinix says matters. Founded a quarter of a century ago, Equinix – a portmanteau of ‘equal internet exchange’ – has a presence in 32 countries across 6 continents.

Digital, according to Chuck Meyers, the CEO of Equinix, has “elevated our standard of living” to such an extent that it has to be considered “the most transformational technology.” These are big words and constitute, arguably, a bold claim. Nonetheless, we concur and have argued consistently in our work that technology needs to be thought of as an enabler, a means to enable the efficient allocation of scarce resource across all industries. Equally, we have stated regularly, that data have no value unless stored (where Equinix obviously plays a crucial role), secured and analysed.

Readers may believe that the above is somewhat self-evident, but numbers shared by Equinix in its presentation highlight just how important and enduring this transformation remains. Per figures from IDC, digital transformation is growing eight times the rate of the global economy. In doing so, such transformation is expected to create a $100tr opportunity over the next decade (per the World Economic Forum). It is hard to dispute the assertion made by Chuck Meyers that “large companies must embrace digital or be left behind.”

AI-advocates can rest assured, for artificial intelligence will play a role in this transformation. We think the nuance Equinix added to the debate – “artificial intelligence will continue to be fuelled by human intelligence” is a valid one. Put another way, AI’s outputs are only as good as its inputs and the technology that enables it to function (for more, see our March 2023 piece). AI as a theme will continue to run for decades. Ultimately, it will be everywhere – even if we don’t realise it – but its datasets will still need to be stored and processed in data centres.

27 June 2023

The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Heptagon Capital is an investor in Equinix The author of this piece has no personal direct investment in the business. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

Click here to view all Blog posts.

Photos taken by the author.

Alex Gunz, Fund Manager

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.

Related Insights

Season 6, Post 20: James Bond, for a morning
  • Featured Insights

Season 6, Post 20: James Bond, for a morning

Season 6, Post 19: Sunny times (sort of)
  • Featured Insights

Season 6, Post 19: Sunny times (sort of)

Heptagon Capital at SuperReturn 2024
  • Featured Insights

Heptagon Capital at SuperReturn 2024

GET THE UPDATES

Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.