(Reuters) – Equinix (NASDAQ:) on Wednesday forecast adjusted core earnings for fiscal 2024 above market expectations on indicators of robust demand for its knowledge middle providers as extra firms go for cloud infrastructure.

Shares of the corporate rose round 2% in prolonged buying and selling.

The forecast fuels optimism that consumer spending on knowledge facilities is anticipated to proceed all through 2024 as extra firms search to infuse synthetic intelligence know-how and automation into their workloads.

Information facilities are essential in supporting AI because the tech requires large computing energy.

Equinix expects fiscal 2024 adjusted core earnings within the vary of $4.09 billion to $4.17 billion, in contrast with analysts’ expectations of $4.05 billion, in response to LSEG knowledge.

The corporate forecast first-quarter income in a spread of $2.13 billion and $2.15 billion in contrast with estimates of $2.14 billion.

For the complete 12 months, it expects income between $8.79 billion and $8.89 billion, barely beneath common analysts’ estimate of $8.87 billion.

Income for the fourth-quarter got here in at $2.11 billion, consistent with analysts’ estimates, whereas adjusted funds from operations – a key measure of money circulation – got here in at $7.30 per share, 3% larger than a 12 months earlier.

Adjusted EBITDA for the quarter ended Dec. 31 rose 10% to $920.5 million, in contrast with estimates of $919.8 million.