EQUINIX INC

Previous wording

We provide a global, vendor-neutral data center, interconnection and edge solutions platform with offerings that aim to enable our customers to reach everywhere, interconnect everyone and integrate everything. Global enterprises, service providers and business ecosystems of industry partners rely on our IBX data centers and expertise around the world for the safe housing of their critical IT equipment and to protect and connect the world's most valued information assets. They also look to Platform Equinix® for the ability to directly and securely interconnect to the networks, clouds and content that enable today's information-driven global digital economy. Our recent IBX data center openings and acquisitions, as well as xScale TM data center investments, have expanded our total global footprint to 272 IBXs, including 21 xScale data centers and the MC1 and SN1 data centers that are held in unconsolidated joint ventures, across 76 markets around the world. We offer the following solutions:

Current wording

We provide a global, vendor-neutral data center, interconnection and edge solutions platform with offerings that aim to enable our customers to reach everywhere, interconnect everyone and integrate everything. Global enterprises, service providers and business ecosystems of industry partners rely on our IBX data centers and expertise around the world for the safe housing of their critical IT equipment and to protect and connect the world's most valued information assets. They also look to Platform Equinix® for the ability to directly and securely interconnect to the networks, clouds and content that enable today's information-driven global digital economy. Our recent IBX data center openings and acquisitions, as well as xScale TM data center investments, have expanded our total global footprint to 273 IBXs, including 21 xScale data centers and the MC1 and SN1 data centers that are held in unconsolidated joint ventures, across 77 markets around the world. We offer the following solutions:

Previous wording

Our cabinet utilization rate represents the percentage of cabinet space billed versus total cabinet capacity, which is used to measure how efficiently we are managing our cabinet capacity. Our cabinet utilization rate varies from market to market among our IBX data centers across our Americas, EMEA and Asia-Pacific regions. Our cabinet utilization rates were approximately 78% and 77% as of June 30, 2025 and 2024, respectively. We continue to monitor the available capacity in each of our selected markets. To the extent we have limited capacity available in a given market, it may limit our ability for growth in that market. We perform demand studies on an ongoing basis to determine if future expansion is warranted in a market. In addition, power and cooling requirements for most customers are growing on a per unit basis. As a result, customers are consuming an increasing amount of power per cabinet. Although we generally do not control the amount of power our customers draw from installed circuits, we have negotiated power consumption limitations with certain high power-demand customers. This increased power consumption, which we expect to accelerate with the adoption of AI, has driven us to build out our new IBX data centers to support power and cooling needs twice that of previous IBX data centers. We could face power limitations in our existing IBX data centers, even though we may have additional physical cabinet capacity available within a specific IBX data center, and in our ability to expand our footprint in existing and new markets. Additionally, global supply chain challenges could result in a lack of availability or delays in the delivery of data center equipment. These challenges have driven us to invest in and commit to future purchases in advance of our standard practice to mitigate risks associated with these supply chain issues. These constraints could have a negative impact on our ability to grow revenues, affecting our financial performance, results of operations and cash flows and the growth opportunities presented by the adoption of new technologies, including AI.

Current wording

Our cabinet utilization rate represents the percentage of cabinet space billed versus total cabinet capacity, which is used to measure how efficiently we are managing our cabinet capacity. Our cabinet utilization rate varies from market to market among our IBX data centers across our Americas, EMEA and Asia-Pacific regions. Our cabinet utilization rates were approximately 78% as of September 30, 2025 and 2024, respectively. We continue to monitor the available capacity in each of our selected markets. To the extent we have limited capacity available in a given market, it may limit our ability for growth in that market. We perform demand studies on an ongoing basis to determine if future expansion is warranted in a market. In addition, power and cooling requirements for most customers are growing on a per unit basis. As a result, customers are consuming an increasing amount of power per cabinet. Although we generally do not control the amount of power our customers draw from installed circuits, we have negotiated power consumption limitations with certain high power-demand customers. This increased power consumption, which we expect to accelerate with the adoption of AI, has driven us to build out our new IBX data centers to support power and cooling needs twice that of previous IBX data centers. We could face power limitations in our existing IBX data centers, even though we may have additional physical cabinet capacity available within a specific IBX data center, and in our ability to expand our footprint in existing and new markets. Additionally, global supply chain challenges could result in a lack of availability or delays in the delivery of data center equipment. These challenges have driven us to invest in and commit to future purchases in advance of our standard practice to mitigate risks associated with these supply chain issues. These constraints could have a negative impact on our ability to grow revenues, affecting our financial performance, results of operations and cash flows and the growth opportunities presented by the adoption of new technologies, including AI.

Previous wording

Our business is primarily based on a recurring revenue model comprised of colocation and related interconnection and managed infrastructure offerings. We consider these offerings recurring because our customers are generally billed on a fixed and recurring basis each month for the duration of their contract, which is generally one to five years in length, and thereafter automatically renews in one-year increments. Our recurring revenues have comprised more than 90% of our total revenues during the past three years. In addition, during the past three years, more than 90% of our monthly recurring revenue bookings came from existing customers, contributing to our revenue growth. Our largest customer accounted for approximately 3% of our recurring revenues for both the three and six months ended June 30, 2025 and 2024. Our 50 largest customers accounted for approximately 36% of our recurring revenues for both the three and six months ended June 30, 2025 and 2024.

Current wording

Our business is primarily based on a recurring revenue model comprised of colocation and related interconnection and managed infrastructure offerings. We consider these offerings recurring because our customers are generally billed on a fixed and recurring basis each month for the duration of their contract, which is generally one to five years in length, and thereafter automatically renews in one-year increments. Our recurring revenues have comprised more than 90% of our total revenues during the past three years. In addition, during the past three years, more than 90% of our monthly recurring revenue bookings came from existing customers, contributing to our revenue growth. Our largest customer accounted for approximately 3% of our recurring revenues for both the three and nine months ended September 30, 2025 and 2024. Our 50 largest customers accounted for approximately 36% of our recurring revenues for both the three and nine months ended September 30, 2025 and 2024.

Previous wording

Cost of Revenues. The largest components of our cost of revenues are depreciation, rental payments related to our leased IBX data centers, utility costs, including electricity, bandwidth access, IBX data center employees' salaries and benefits, including stock-based compensation, repairs and maintenance, supplies and equipment, and security. A majority of our cost of revenues is fixed in nature and should not vary significantly from period to period, unless we expand our existing IBX data centers or open or acquire new IBX data centers. However, there are certain costs that are considered more variable in nature, including utilities and supplies that are directly related to growth in our existing and new customer base. In addition, the cost of electricity is generally higher in the summer months, as compared to other times of the year. Our costs of electricity may also increase as a result of the physical effects of climate change, global energy supply constraints, increased regulations driving alternative electricity generation due to environmental considerations or as a result of our election to use renewable energy sources. To the extent we incur increased utility costs, such increased costs could materially impact our financial condition, results of operations and cash flows.

Current wording

Cost of Revenues. The largest components of our cost of revenues are depreciation, rental payments related to our leased IBX data centers, utility costs, including electricity, bandwidth access, IBX data center employees' salaries and benefits, including stock-based compensation, repairs and maintenance, supplies and equipment, and security. A majority of our cost of revenues is fixed in nature and should not vary significantly from period to period, unless we expand our existing IBX data centers or open or acquire new IBX data centers. However, there are certain costs that are considered more variable in nature, including utilities and supplies that are directly related to growth in our existing and new customer base. In addition, the cost of electricity is subject to seasonal fluctuations.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA makes permanent or extends key elements of the Tax Cuts and Jobs Act (“TCJA”), including 100% bonus depreciation, domestic research cost expensing, the business interest expense limitation and the eligibility of ordinary REIT dividends for the qualified business income deduction. In addition, the OBBBA modifies the international tax provisions of the TCJA such as the global intangible low-taxed income inclusion and increases the REIT qualification threshold for the value of the REIT’s assets that may be represented by securities of one or more taxable REIT subsidiaries from

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, making permanent or extending key provisions of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic R&D expensing, business interest expense limitations and the qualified business income deduction for ordinary REIT dividends. The OBBBA also revises international tax rules such as the global intangible low-taxed income inclusion and raises the REIT asset threshold for taxable REIT subsidiaries from 20% to 25%, effective for tax years beginning after December 31, 2025. The legislation does not have a material impact on our income tax position.

Previous wording

Americas Revenues. During the three months ended June 30, 2025, Americas revenues increased by $38 million or 4% (5% on a constant currency basis). Growth in Americas revenues was primarily due to:

Current wording

Americas Revenues. During the three months ended September 30, 2025, Americas revenues increased by $77 million or 8% (8% on a constant currency basis). Growth in Americas revenues was primarily due to:

Previous wording

EMEA Revenues. During the six months ended June 30, 2025, EMEA revenues increased by $62 million or 4% (4% on a constant currency basis). Growth in EMEA revenues was primarily due to:

Current wording

EMEA Revenues. During the three months ended September 30, 2025, EMEA revenues increased by $41 million or 6% (3% on a constant currency basis). Growth in EMEA revenues was primarily due to an increase in orders from both our existing customers and new customers during the period.

Previous wording

Americas Cost of Revenues. During the three months ended June 30, 2025, Americas cost of revenues increased by $21 million or 5% (6% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to:

Current wording

Americas Cost of Revenues. During the three months ended September 30, 2025, Americas cost of revenues increased by $21 million or 5% (5% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to $12 million of higher depreciation expense driven by IBX data center expansions and higher costs across various other categories including compensation costs and software costs.

Previous wording

EMEA Cost of Revenues. During the three months ended June 30, 2025, EMEA cost of revenues decreased by $33 million or 8% (9% on a constant currency basis). The decrease in our EMEA cost of revenues was primarily driven by decreases in power costs.

Current wording

EMEA Cost of Revenues. During the three months ended September 30, 2025, EMEA cost of revenues increased by $38 million or 10% (6% on a constant currency basis). The increase in our EMEA cost of revenues was primarily due to higher costs across various categories including rent and facilities costs and repairs and maintenance expense.

Previous wording

•approximately $21 million of incremental revenues generated from IBX data center expansion projects which were completed within the twelve months ended June 30, 2025; and

Current wording

Asia-Pacific Cost of Revenues. During the three months ended September 30, 2025, Asia-Pacific cost of revenues decreased by $15 million or 6% (7% on a constant currency basis) primarily due to $21 million of lower costs to provide non-recurring services, partially offset by higher compensation costs and higher depreciation expense.

Previous wording

Asia-Pacific Sales and Marketing Expenses. Our Asia-Pacific sales and marketing expense did not materially change during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Current wording

Asia-Pacific Sales and Marketing Expenses. During the three months ended September 30, 2025, Asia-Pacific sales and marketing expense decreased by $9 million or 24% (25% on a constant currency basis) primarily due to lower bad debt expense.

Previous wording

Going forward, although we are carefully monitoring our spending, we will continue to invest in our operations to support our growth, including investments to enhance our technology platform, to maintain our qualification for taxation as a REIT and to integrate recent acquisitions. Additionally, since our corporate headquarters is located in the U.S., we expect the Americas general and administrative expenses as a percentage of revenues to continue to be higher than other regions.

Current wording

Going forward, although we are carefully monitoring our spending, we will continue to invest in our operations to support our growth, including investments to enhance our technology platform, to maintain our qualification for taxation as a REIT and to integrate recent acquisitions. Additionally, since our corporate headquarters is located in the U.S., we expect the Americas general and administrative expenses as a percentage of revenues to continue to be higher than those of other regions.

Previous wording

Gain or Loss on Asset Sales. We did not record a significant gain or loss on asset sales during the three months ended June 30, 2025. During the three months ended June 30, 2024, we recorded a gain of $18 million, primarily related to the sale of the Silicon Valley 12 ("SV12x") data center.

Current wording

Gain or Loss on Asset Sales. We did not record a significant gain or loss on asset sales during the three months ended September 30, 2025 and 2024.

Previous wording

Americas Income from Operations. During the three months ended June 30, 2025, Americas income from operations decreased by $11 million or 10% (8% on a constant currency basis), primarily due to the gain recognized on the sale of the SV12x data center in the prior year, and higher utilities costs. This was partially offset by higher revenues as a result of our IBX data center expansion activity and organic growth, as described above.

Current wording

Americas Income from Operations. During the three months ended September 30, 2025, Americas income from operations increased by $31 million or 46% (46% on a constant currency basis), primarily due to higher revenues as a result of our IBX data center expansion activity and organic growth. This was partially offset by higher costs of revenue, as described above.

Previous wording

Asia-Pacific Income from Operations. Our Asia-Pacific income from operations did not materially change during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 due to the increase in revenues being offset by higher costs to support business growth.

Current wording

EMEA Income from Operations. Our EMEA income from operations did not materially change during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Previous wording

Interest Income. Interest income was $99 million for the six months ended June 30, 2025 and was $53 million for the six months ended June 30, 2024. The increase was primarily due to interest income earned on a higher average balance of cash, cash equivalents and short-term investments as well as on the AMER 2 Loan further described in Note 5 within the condensed consolidated financial statements.

Current wording

Interest Income. Interest income was $53 million for the three months ended September 30, 2025 and was $35 million for the three months ended September 30, 2024. The increase was primarily due to interest income earned on a higher average balance of cash, cash equivalents and short-term investments.

Previous wording

Interest Expense. Interest expense increased to $135 million for the three months ended June 30, 2025 from $110 million for the three months ended June 30, 2024, primarily due to the following debt issuances:

Current wording

Interest Expense. Interest expense increased to $128 million for the three months ended September 30, 2025 from $117 million for the three months ended September 30, 2024, primarily due to the following debt issuances:

Previous wording

•the issuance of the 3.500% SGD Notes due 2030 in the first quarter of 2025; and

Current wording

•the issuance of the 3.500% SGD Notes due 2030 in the first quarter of 2025;

Previous wording

•the issuance of the 3.250% Euro Senior Notes due 2029 and the 4.000% Euro Senior Notes due 2034 in the second quarter of 2025.

Current wording

•the issuance of the 3.250% Euro Senior Notes due 2029 and the 4.000% Euro Senior Notes due 2034 in the second quarter of 2025; and

Previous wording

The increase to interest expense driven by debt issuances was partially offset by the repayment of the 2.625% Senior Notes in the fourth quarter of 2024.

Current wording

The increase to interest expense driven by debt issuances was partially offset by the repayment of the 2.625% Senior Notes in the fourth quarter of 2024 and the 1.250% Senior Notes and 1.000% Senior Notes in the third quarter of 2025.

Previous wording

During the three months ended June 30, 2025 and 2024, we capitalized $14 million and $9 million, respectively, of interest expense to construction in progress. See Note 9 within the condensed consolidated financial statements.

Current wording

During the three months ended September 30, 2025 and 2024, we capitalized $26 million and $9 million, respectively, of interest expense to construction in progress. See Note 9 within the condensed consolidated financial statements.

Previous wording

For the three months ended June 30, 2025 and 2024, we recorded $38 million and $47 million of income tax expense, respectively. Our effective tax rates were 9.4% and 13.5% for the three months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three months ended June 30, 2025 as compared to the same period in 2024 was primarily due to higher income in the U.S. and Canada that did not result in higher tax expense in the current period due to the REIT status in the U.S. and the utilization of net operating loss carryforwards in Canada.

Current wording

For the three months ended September 30, 2025 and 2024, we recorded $25 million and $54 million of income tax expense, respectively. Our effective tax rates were 6.3% and 15.4% for the three months ended September 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three months ended September 30, 2025 as compared to the same period in 2024 was primarily due to the release of the valuation allowance in Canada and the revaluation of the net deferred tax liabilities in Germany due to the tax rate reductions enacted in the current period.

Previous wording

Adjusted EBITDA. Adjusted EBITDA is a key factor in how we assess the operating performance of our segments and develop regional growth strategies such as IBX data center expansion decisions. We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs, and gain or loss on asset sales. See "Non-GAAP Financial Measures" below for more information about adjusted EBITDA and a reconciliation of adjusted EBITDA to net income. Our adjusted EBITDA for the three months ended June 30, 2025 and 2024 by geographic regions was as follows ($ in millions):

Current wording

Adjusted EBITDA. We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs, and gain or loss on asset sales. See "Non-GAAP Financial Measures" below for more information about adjusted EBITDA and a reconciliation of adjusted EBITDA to net income. Our adjusted EBITDA for the three months ended September 30, 2025 and 2024 by geographic regions was as follows ($ in millions):

Previous wording

Americas Adjusted EBITDA. During the three months ended June 30, 2025, Americas adjusted EBITDA increased by $15 million or 3% (4% on a constant currency basis), primarily due to higher revenues as a result of IBX data center expansion activity and organic growth, partially offset by an increase in costs to support business growth, as described above.

Current wording

Americas Adjusted EBITDA. During the three months ended September 30, 2025, Americas adjusted EBITDA increased by $62 million or 15% (15% on a constant currency basis), primarily due to higher revenues as a result of IBX data center expansion activity and organic growth, partially offset by an increase in costs to support business growth, as described above.

Previous wording

EMEA Adjusted EBITDA. During the six months ended June 30, 2025, EMEA adjusted EBITDA increased by $112 million or 17% (17% on a constant currency basis), primarily due to higher revenues as a result of IBX data center expansion activity, organic growth and lower costs of revenues, as described above.

Current wording

EMEA Adjusted EBITDA. During the three months ended September 30, 2025, EMEA adjusted EBITDA increased by $12 million or 3% (1% on a constant currency basis), primarily due to organic growth, as described above.

Previous wording

Asia-Pacific Adjusted EBITDA. Our Asia-Pacific adjusted EBITDA did not materially change during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Current wording

Asia-Pacific Adjusted EBITDA. During the three months ended September 30, 2025, Asia-Pacific adjusted EBITDA increased by $26 million or 10% (8% on a constant currency basis), primarily due to lower costs to support business growth, as described above.

Previous wording

Revenues. Our revenues for the six months ended June 30, 2025 and 2024 were generated from the following revenue classifications and geographic regions ($ in millions):

Current wording

Revenues. Our revenues for the nine months ended September 30, 2025 and 2024 were generated from the following revenue classifications and geographic regions ($ in millions):

Previous wording

Americas Revenues. During the six months ended June 30, 2025, Americas revenues increased by $100 million or 5% (7% on a constant currency basis). Growth in Americas revenues was primarily due to:

Current wording

Americas Revenues. During the nine months ended September 30, 2025, Americas revenues increased by $177 million or 6% (7% on a constant currency basis). Growth in Americas revenues was primarily due to:

Previous wording

•$16 million of incremental revenues from non-recurring services provided to our joint ventures; and

Current wording

•$17 million of incremental revenues from non-recurring services provided to our joint ventures; and

Previous wording

EMEA Revenues. During the three months ended June 30, 2025, EMEA revenues increased by $46 million or 6% (5% on a constant currency basis). Growth in EMEA revenues was primarily due to:

Current wording

EMEA Revenues. During the nine months ended September 30, 2025, EMEA revenues increased by $103 million or 5% (4% on a constant currency basis). Growth in EMEA revenues was primarily due to:

Previous wording

Asia-Pacific Revenues. During the three months ended June 30, 2025, Asia-Pacific revenues increased by $13 million or 3% (1% on a constant currency basis). Growth in Asia-Pacific revenues was primarily due to:

Current wording

Asia-Pacific Revenues. During the nine months ended September 30, 2025, Asia-Pacific revenues increased by $30 million or 2% (2% on a constant currency basis). Growth in Asia-Pacific revenues was primarily due to:

Previous wording

Cost of Revenues. Our cost of revenues for the six months ended June 30, 2025 and 2024 by geographic regions was as follows ($ in millions):

Current wording

Cost of Revenues. Our cost of revenues for the nine months ended September 30, 2025 and 2024 by geographic regions was as follows ($ in millions):

Previous wording

Americas Cost of Revenues. During the six months ended June 30, 2025, Americas cost of revenues increased by $32 million or 4% (5% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to:

Current wording

Americas Cost of Revenues. During the nine months ended September 30, 2025, Americas cost of revenues increased by $53 million or 4% (5% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to:

Previous wording

•$16 million of higher costs to provide non-recurring services; and

Current wording

•$20 million of higher costs to provide non-recurring services; and

Previous wording

•$12 million of higher utilities costs, driven by increases in power costs.

Current wording

•$14 million of higher utilities costs, driven by increases in power consumption.

Previous wording

EMEA Cost of Revenues. During the six months ended June 30, 2025, EMEA cost of revenues decreased by $68 million or 8% (8% on a constant currency basis). The decrease in our EMEA cost of revenues was primarily driven by decreases in power costs, partially offset by higher compensation costs including salaries, bonuses and stock-based compensation, primarily due to headcount growth.

Current wording

EMEA Cost of Revenues. During the nine months ended September 30, 2025, EMEA cost of revenues decreased by $30 million or 2% (3% on a constant currency basis). The decrease in our EMEA cost of revenues was primarily due to lower utilities costs as a result of decreases in power prices in Germany, Netherlands and the United Kingdom. The decrease was partially offset by higher costs across various categories including compensation costs, rent and facilities costs and repairs and maintenance.

Previous wording

Asia-Pacific Cost of Revenues. During the six months ended June 30, 2025, Asia-Pacific cost of revenues increased by $31 million or 7% (7% on a constant currency basis). The increase in our Asia-Pacific cost of revenues was primarily due to:

Current wording

Asia-Pacific Cost of Revenues. During the nine months ended September 30, 2025, Asia-Pacific cost of revenues increased by $16 million or 2% (2% on a constant currency basis). The increase in our Asia-Pacific cost of revenues was primarily due to $8 million of higher depreciation expense driven by IBX data center expansions. The remainder of the increase is driven by higher costs across various categories including compensation, partially offset by lower utilities costs.

Previous wording

Sales and Marketing Expenses. Our sales and marketing expenses for the six months ended June 30, 2025 and 2024 by geographic regions were as follows ($ in millions):

Current wording

Sales and Marketing Expenses. Our sales and marketing expenses for the nine months ended September 30, 2025 and 2024 by geographic regions were as follows ($ in millions):

Previous wording

EMEA Sales and Marketing Expenses. During the six months ended June 30, 2025, EMEA sales and marketing expense increased by $8 million or 9% (7% on a constant currency basis) primarily due to higher bad debt expense.

Current wording

Americas Sales and Marketing Expenses. During the nine months ended September 30, 2025, Americas sales and marketing expense decreased by $8 million or 2% (1% on a constant currency basis) primarily due to $12 million of lower bad debt expense, partially offset by higher advertising costs.

Previous wording

We anticipate that we will continue to invest in sales and marketing initiatives to support the growth of our business. We expect our Americas sales and marketing expenses as a percentage of revenues to continue to be higher than those of our other regions since certain global sales and marketing functions are located within the U.S.

Current wording

We anticipate that we will continue to invest in sales and marketing initiatives to support the growth of our business. We expect our Americas sales and marketing expenses as a percentage of revenues to be higher than those of our other regions since certain global sales and marketing functions are located within the U.S.