Ephemeral Towers

by

They speak of Applied Digital, a name that echoes with the brittle promise of quick ascent. A surge, they call it—nearly 540% in twelve months. A bloom, perhaps, of something artificial, nurtured on the vapor of expectation. It builds these concrete cathedrals, these data centers, and leases them out, a modern form of indentured servitude. A cloud business, launched with fanfare, now deemed unprofitable, a shadow cast by its own ambition. To spin it off, they say, as if severing a limb to save the body. A curious logic, this.

From a modest beginning—$8.5 million—to a fleeting $144.2 million, the numbers swell, divorced from the slow, organic growth of things that endure. Two sites in North Dakota, holding 286 MW of power, a temporary fortress against the relentless tide. Fifteen years of contracted payments—$16 billion—mostly flowing toward CoreWeave, another name whispered on the wind. A delicate arrangement, built on the shifting sands of technological dependence.

They expand, of course. Polaris Forge 1, a name that suggests both exploration and fabrication. But expansion is a hunger that knows no satiation, and the costs mount, a perpetual debt to the future. Even after the shedding of the unprofitable limb, the balance sheets remain stubbornly earthbound. The dream of becoming a REIT—a real estate investment trust—remains distant, a mirage shimmering on the horizon. A payout of 90% of taxable income…a generous gesture, or a desperate plea for legitimacy?

The market, predictably, anticipates a surge—61% in revenue, then another 55%. But a market capitalization of $10.1 billion…a valuation that feels less like an assessment of worth and more like a collective hallucination. Losses will continue, they admit, as the concrete grows and the power demands increase. It is a fever dream, this pursuit of exponential growth, a forgetting of the natural rhythms of things.

Better, perhaps, to turn one’s gaze toward Equinix. A name less flamboyant, less burdened by the weight of expectation. Over 270 data centers, a sprawling network that feels less like a fortress and more like a labyrinth. They divide these spaces into smaller units, catering to a wider range of needs, a more humble approach. They connect their clients, fostering a sense of interdependence, a quiet web of connections.

Ten thousand customers, connected by nearly 500,000 interconnections. An ecosystem, they claim, larger than the next ten combined. And the revenue…more than forty times that of Applied Digital. A quiet strength, built on years of steady growth, a foundation that feels less precarious. From 2020 to 2024, revenue and earnings grew at a respectable pace, a slow, deliberate ascent.

A dividend yield of 2.3%, raised annually for a decade. A gesture of stability, a promise of continuity. Adjusted funds from operations—a measure of profitability—are expected to rise, easily covering the dividend payout. A valuation of 21 times that estimate, a reasonable price for a company that delivers consistent results. A market cap of $79.2 billion, a weight that feels less like a burden and more like a testament to endurance.

Analysts predict growth—6% in revenue, 74% in earnings. But these are merely numbers, projections on a wall. The true measure of a company lies not in its potential, but in its ability to weather the storms, to adapt to the changing seasons. The expansion of the AI market will undoubtedly drive growth, as will the demand for interconnection services. But these are merely currents in a vast ocean.

The growth rates of Equinix may not be as spectacular as those of Applied Digital. But they are, perhaps, more sustainable. More rooted in the earth. It is a slower rhythm, a more deliberate pace. And for those who seek not fleeting glory, but enduring value, it is a more promising path. A quiet tower, built not on the vapor of expectation, but on the solid foundation of time.

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2026-01-28 05:23