Equinix today announced its Q2 2021 earnings, provided updates on its IBX data center portfolio, interconnections, and its development plan, which includes its xScale joint venture with GIC.
Q2 2021 Results – Equinix
Equinix operates a global footprint of 230 data centers, representing 320k cabinets of power capacity. Additionally, these data centers comprise 27.0 million sqft, across 64 metros around the world, and support 10k+ customers.
Equinix generated revenues of $1.66bn in Q2 2021, a 4% increase over Q1 2021 and an 8% increase over Q2 2020 (constant currency basis). Specifically, breaking this down by region, Equinix’s growth was as follows (constant currency basis):
- Americas: 3% increase quarter-over-quarter and an 8% increase over year-over-year
- EMEA: 4% increase quarter-over-quarter and an 8% increase over year-over-year
- Asia-Pacific: 6% increase quarter-over-quarter and an 11% increase over year-over-year
In Q2 2021, Equinix delivered record bookings, noting particular success in the Americas region and enterprise vertical, with 4.6k+ deals across 3.2k+ customers. Additionally, the company’s channel program contributed 35%+ of Equinix’s bookings.
At quarter-end Equinix was billing on 253k out of its 320k cabinets of power capacity, representing a utilization rate of 79%. Geographically, Equinix’s utilization is 73% in the Americas, 83% in EMEA, and 82% in Asia-Pacific.
Equinix added more than 7.8k net interconnections during Q2 2021, bringing the company’s total interconnections to over 406k at quarter-end. Of this total, 373k are physical cross connects and 33k are virtual connections.
Overall, the company’s growth in interconnections resulted in interconnection revenues growing 15% year-over-year in Q2 2021.
Full-Year 2021 Guidance – Equinix
For full-year 2021, Equinix is guiding to revenue of $6.62bn to $6.66bn, an increase of ~8% over 2020 (constant currency). Additionally, the company is targeting adjusted EBITDA of $3.11bn to $3.15bn (47% margin).
Development Plan – Equinix
Equinix indicates that 2021 will be one its most active build years ever. To this end, Equinix has 35 major builds underway in 25 markets across 19 countries, including 7 xScale builds in all three regions of the world. Following significant development, the company anticipates ending 2021 with 334k cabinets of power capacity.
Development Focus (excluding xScale)
During 2021, Equinix anticipates spending of $2.1bn to $2.3bn in development capital expenditures, excluding xScale-related projects. Additionally, as part of its Q2 2021 earnings release, Equinix approved a new IBX expansion of 525 cabinets of power capacity in Istanbul (IL2). Finally, during the quarter, Equinix opened new IBX data centers in Bordeaux (BX1), Helsinki (HE7), and Silicon Valley (SV11).
xScale Joint Venture – Hyperscale Builds
Equinix announced agreements for additional joint ventures with GIC, in June 2021. When closed and fully built-out, the total investment between Equinix and GIC through this xScale data center portfolio will be nearly $7bn, across 32 facilities globally with 600+ megawatts of power capacity.
Overall, xScale-related capital expenditures during 2021 will reach between $425m and $475m. Of this total, Equinix will be re-imbursed 80% by GIC for future xScale joint ventures.
Finally, Equinix notes that it is actively engaged with partners to develop entry plans into other expansion markets globally, including Australia.
In Q2 2021, Equinix pre-leased its entire Frankfurt 9x asset with 18 megawatts of power capacity. Also, Equinix pre-leased its entire London 11x asset with 19 megawatts of power capacity.
As shown below, 109 megawatts of xScale capacity has been leased to-date, including all of Equinix’s operational xScale capacity. Therefore, in these facilities, Equinix has 31 out of 140 megawatts of power capacity available to lease.