Aug 7 (Reuters) - Equinix ( EQIX ) raised its annual

adjusted core earnings forecast on Wednesday, betting on strong

demand for its data center operation services amid growing

adoption of generative artificial intelligence technology.

Demand for companies offering data center services has

remained strong as more businesses look to incorporate

generative AI into their products and transition their workloads

to the cloud.

Generative AI processing needs high-power servers to train

large language models and these servers are located in data

centers with advanced cooling systems and infrastructure to

maintain smooth operations.

Demand for such infrastructure has helped companies such as

Equinix ( EQIX ) and Digital Realty Trust ( DLR ), which lease out their

data centers to clients.

Equinix ( EQIX ) acquired three data centers in the Philippines last

month, in a bid to expand its presence in the high growth

potential region of Southeast Asia.

The company expects adjusted core earnings to be between

$4.07 billion and $4.13 billion for fiscal year 2024, compared

with its previous forecast of $4.04 billion to $4.12 billion.

Analysts on average expect $4.10 billion, according to LSEG

data.

Equinix ( EQIX ) also forecast third-quarter revenue in the range of

$2.19 billion to $2.21 billion, while analysts estimate $2.21

billion.

The company's revenue stood at $2.16 billion during the

second quarter, in line with analysts' estimate.

Adjusted core earnings were $1.04 billion for the three

months ended June 30, up 4% over the previous quarter.

Adjusted funds from operations - a key measure of cash flow

- came in at $9.22 per share, up 4% sequentially.