REDWOOD CITY, Calif., Dec. 20, 2023 /PRNewswire/ — Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company®, today announced the full allocation of $4.9 billion in investment-grade green bonds to advance its progress toward its near-term science-based target to become climate neutral by 2030 and improve the operational eco-efficiency of its business. Since 2020, six bond offerings have been issued, and as of the end of June 2023, all bonds have been fully allocated.
Over the last five years, the bond offerings supported 172 green building projects across 105 sites, 33 energy efficiency projects, and two Power Purchase Agreement (PPA) projects. The PPAs support 225 megawatts of renewable energy capacity which are expected to mitigate or avoid 383,300 metric tons of CO2e annually—the equivalent to emissions from more than 85,296 gasoline-powered passenger vehicles driven for one year.
Equinix has developed a Green Finance Framework based on the Green Bond Principles and Green Loan Principles, a set of guidelines that promote transparency and integrity in, and advance the standardization of, green debt disclosures. The Framework aims to increase Equinix’s focus on protecting the environment and addressing global climate change through greenhouse gas emissions reductions, increasing resource efficiency, and driving corporate transparency and accountability.
In line with the International Capital Market Association’s Green Bond Principles (GBP) 2018 and the Loan Syndications and Trading Association’s Green Loan Principles (GLP) 2020, Equinix is allocating 100% of the Green Financing net proceeds to a portfolio of Eligible Green Projects which showcase how Equinix is building and operating sustainably, including Green Buildings; Renewable Energy; Energy Efficiency; Sustainable Water and Wastewater Management; Waste Management; and Clean Transportation.
“Equinix considers green bonds a valuable tool to raise capital and finance large projects that can increase the sustainability of our business. Our green bonds demonstrate Equinix’s continued commitment to design, build and deliver the most reliable, secure and sustainable data center and digital infrastructure possible in order to benefit our customers, the communities in which we operate, our investors, and the planet,” said Katrina Rymill, SVP Corporate Finance & Sustainability, Equinix. “Through the allocation of our green bonds, we continue to be able to directly align our financing needs with our sustainability strategy.”
Equinix publishes its Green Bond Allocation and Impact Reports annually to provide transparency on progress. The 2023 report can be accessed via Equinix’s Annual Sustainability Report.
Highlights/Key Facts
- In 2021, Equinix set ambitious climate targets to address its proportional share of greenhouse gas (GHG) emissions. Equinix is the first data center company to commit to being climate neutral globally by 2030, aligned to a science-based target (SBT) for emissions reductions across its global operations and supply chain. As reported in its 2022 Sustainability Report, Equinix reached 96% renewable energy coverage across its global portfolio, achieved an operational annual average PUE of 1.46, and reduced its Scope 1 and 2 carbon footprint by 23% since 2019. The company continues to progress on various decarbonization and resource efficiency efforts.
- Use of proceeds from green bonds issued by Equinix have been allocated toward initiatives including:
- Equinix’s Co-Innovation Facility (CIF) in Ashburn, VA, which provides a platform for trialing and showcasing advanced power, cooling and control methodologies—such as fuel cells and liquid cooling—for use in its future data centers. The facility, located in Equinix’s DC15 International Business Exchange™ (IBX®) data center, allows the company to work with key innovative suppliers to develop prototype approaches, such as direct-to-chip liquid cooling. Last week the company announced plans to expand support for advanced liquid cooling technologies—such as direct-to-chip—to more than 100 of its IBX data centers in more than 45 metros around the world.
- Equinix’s MU4 IBX data center, located in Aschheim, Germany, is designed for optimal efficiency and includes technologies for hybrid cooling and an Aquifer Thermal Energy Storage (ATES) system for efficient storage and recovery of thermal energy. The building also has a green façade and partially planted roof aimed at enhancing biodiversity while acting as additional natural insulation and cooling. Equinix is also exploring options to share the site’s waste heat with external consumers.
- Entering PPAs with developers to help build new renewable energy resources on the grids where Equinix operates, can enable the company to grow its business responsibly. This includes projects like the Rush Springs wind farm, a 125-megawatt wind farm in Grady and Stephens Counties, OK, where Equinix made a 15-year commitment. The projects are expected to deliver average annual avoidance of more than 218,600 metric tons of CO2e relative to the energy grid in the region.
- The redesign of the chilled water production system at LD5, located in Slough near London. The new system enables the site to harness low outside temperatures during colder months and lowers energy consumption. This project has the potential to result in an average annual avoidance of more than 2,600 metric tons of carbon dioxide equivalent (MTCO2e) due to reduced electricity demand.
- For the first time, Equinix achieved the highest-ranking score of the CDP’s prestigious 2022 “Climate Change A List,” a leading environmental rating system focused on climate-related transparency and action, recognizing the company’s transparency and performance around addressing climate risks. Less than 2% of global reporting companies were named to the A-list in 2022, further demonstrating Equinix’s leadership position. The company has also been recognized by the U.S. EPA every year since 2015 on its list of Top 100 Green Power Partners, which highlights corporate contributions to helping advance the development of the nation’s green power market, and Equinix’s commitment to reach 100% clean and renewable energy across its portfolio.
- Equinix has continued to advance its green initiatives through its participation in the Climate Neutral Data Centre Operator Pact and Self-Regulatory Initiative. The Pact marks the first time the data center industry has come together to solidify its commitment to ensure that European data centers are carbon neutral by 2030, among other environmental priorities.
Additional Resources
About Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company®. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX® and xScale® data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
SOURCE Equinix, Inc.
