Equinix, Inc. EQIX enjoys solid demand for inter-connected data-center space at its facilities, stemming from the rising need for digital infrastructure and cloud adoption. In order to meet the growing demand, the company is expanding its IBX data centers globally. Though expansion efforts amid this backdrop are strategic fits, such moves involve huge capital outlays. Also stiff competition adds to its woe.Robust growth in cloud computing, Internet of Things and big data, and greater call for third-party IT infrastructure are spurring demand for data-center infrastructure. Moreover, growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets is anticipated to be robust over the next five to six years.As infrastructure providers for this rapidly-growing digital economy, data-center providers such as Equinix, Digital Realty Trust DLR, CyrusOne Inc. CONE and CoreSite Realty Corporation COR, are well placed for sustainable growth.Equinix is capitalizing on these tailwinds by developing and acquiring data centers globally. In second-quarter 2021, the company opened three facilities in Bordeaux, Helsinki and Silicon Valley.Moreover, the company’s joint venture (JV) with Singapore's sovereign wealth fund GIC to develop and operate xScale data centers in Europe attracts additional partners and other hyperscale providers to Equinix's ecosystem. In June, the company announced about the agreements for an additional JV in the form of limited liability partnerships with GIC.Apart from these, the company is increasing its service offerings and inter-connection solutions. Acceleration in enterprise cloud adoption and increasing cloud or Internet customers’ demands for the highly inter-connected data-center space is strengthening Equinix’s inter-connected ecosystem and will likely boost recurring revenues.Shares of this Zacks Rank #3 (Hold) company have gained 20.1% over the past six months, outperforming the industry's growth of 16.4%. In addition, the trend in estimate revisions for 2021 funds from operations (FFO) per share indicates a favorable outlook for the company, as it has witnessed marginal upward revision over the past month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchConsidering the strong growth potential in the data-center market, competition from other providers has intensified. Equinix competes with neutral colocation providers, as well as traditional colocation providers, Internet service providers and web-hosting facilities. The increased competition is anticipated to prompt aggressive pricing policies, making Equinix vulnerable to pricing pressure.Also, capital-intensive expansion efforts to meet the growing demand for colocation and inter-connection services are likely to increase its debt. Growing debt burden will likely adversely impact its results as interest expenses would go up.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX): Get Free Report Digital Realty Trust, Inc. (DLR): Get Free Report CoreSite Realty Corporation (COR): Free Stock Analysis Report CyrusOne Inc (CONE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research