filings.toolsItem 16. Form 10-K Summary
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Item 16. Form 10-K Summary
Not applicable.
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
| EQUINIX, INC. (Registrant) | ||||||||
| February 11, 2026 | By | /s/ ADAIRE FOX-MARTIN | ||||||
| Adaire Fox-Martin | ||||||||
| Chief Executive Officer and President |
Power of Attorney
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Adaire Fox-Martin or Keith D. Taylor, or either of them, each with the power of substitution, their attorney-in-fact, to sign any amendments to this Annual Report on Form 10-K (including post-effective amendments), and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or their substitute or substitutes, may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Signature | Title | Date | ||||||
| /s/ ADAIRE FOX-MARTIN | Chief Executive Officer and President (Principal Executive Officer) | February 11, 2026 | ||||||
| Adaire Fox-Martin | ||||||||
| /s/ KEITH D. TAYLOR | Chief Financial Officer (Principal Financial Officer) | February 11, 2026 | ||||||
| Keith D. Taylor | ||||||||
| /s/ SIMON MILLER | Chief Accounting Officer (Principal Accounting Officer) | February 11, 2026 | ||||||
| Simon Miller | ||||||||
| /s/ CHARLES MEYERS | Executive Chairman | February 11, 2026 | ||||||
| Charles Meyers | ||||||||
| /s/ NANCI CALDWELL | Director | February 11, 2026 | ||||||
| Nanci Caldwell | ||||||||
| /s/ GARY F. HROMADKO | Director | February 11, 2026 | ||||||
| Gary F. Hromadko | ||||||||
| /s/ REBECCA KUJAWA | Director | February 11, 2026 | ||||||
| Rebecca Kujawa | ||||||||
| /s/ YANBING LI | Director | February 11, 2026 | ||||||
| Yanbing Li | ||||||||
| /s/ THOMAS OLINGER | Director | February 11, 2026 | ||||||
| Thomas Olinger | ||||||||
| /s/ CHRISTOPHER B. PAISLEY | Director | February 11, 2026 | ||||||
| Christopher B. Paisley | ||||||||
| /s/ SANDRA RIVERA | Director | February 11, 2026 | ||||||
| Sandra Rivera | ||||||||
| /s/ FIDELMA RUSSO | Director | February 11, 2026 | ||||||
| Fidelma Russo |
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Equinix, Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Equinix, Inc. and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders' equity and other comprehensive income (loss) and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable
F-1
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Revenue Recognition – Colocation and Interconnection Revenues
As described in Notes 1 and 18 to the consolidated financial statements, the Company’s total recurring revenues for the year ended December 31, 2025, were $8,739 million, of which a majority relates to $6,475 million of colocation revenues and $1,655 million of interconnection revenues. Colocation and interconnection revenues are recurring revenue streams that are generally billed monthly and recognized ratably over the term of the contract. Revenues are recognized when control of these products and services is transferred to the Company’s customers, in an amount that reflects the consideration management expects to be entitled to in exchange for the products and services.
The principal consideration for our determination that performing procedures relating to colocation and interconnection revenue recognition is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the input of customer data and the recording of revenue. These procedures also included, among others, (i) testing revenue recognized for a sample of colocation and interconnection revenue transactions by obtaining and inspecting source documents, such as master service agreements, invoices, cash receipts and sales orders, and (ii) confirming a sample of outstanding customer invoice balances as of December 31, 2025, and, for confirmations not returned, obtaining and inspecting source documents, such as invoices and subsequent cash receipts.
/s/ PricewaterhouseCoopers LLP
San Jose, California
February 11, 2026
We have served as the Company's auditor since 2000.
F-2
EQUINIX, INC.
Consolidated Balance Sheets
(in millions, except share and per share data)
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,727 | $ | 3,081 | |||||||
| Short-term investments | 1,500 | 527 | |||||||||
| Accounts receivable, net of allowance of $16 and $19 | 1,001 | 949 | |||||||||
| Other current assets | 897 | 890 | |||||||||
| Total current assets | 5,125 | 5,447 | |||||||||
| Property, plant and equipment, net | 23,584 | 19,249 | |||||||||
| Operating lease right-of-use assets | 1,392 | 1,419 | |||||||||
| Goodwill | 5,984 | 5,504 | |||||||||
| Intangible assets, net | 1,316 | 1,417 | |||||||||
| Other assets | 2,740 | 2,049 | |||||||||
| Total assets | $ | 40,141 | $ | 35,085 | |||||||
| Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 1,350 | $ | 1,193 | |||||||
| Accrued property, plant and equipment | 564 | 387 | |||||||||
| Current portion of operating lease liabilities | 155 | 144 | |||||||||
| Current portion of finance lease liabilities | 168 | 189 | |||||||||
| Current portion of mortgage and loans payable | 17 | 5 | |||||||||
| Current portion of senior notes | 1,299 | 1,199 | |||||||||
| Other current liabilities | 340 | 232 | |||||||||
| Total current liabilities | 3,893 | 3,349 | |||||||||
| Operating lease liabilities, less current portion | 1,304 | 1,331 | |||||||||
| Finance lease liabilities, less current portion | 2,187 | 2,086 | |||||||||
| Mortgage and loans payable, less current portion | 686 | 644 | |||||||||
| Senior notes, less current portion | 16,910 | 13,363 | |||||||||
| Other liabilities | 983 | 760 | |||||||||
| Total liabilities | 25,963 | 21,533 | |||||||||
| Commitments and contingencies (Note 14) | |||||||||||
| Redeemable non-controlling interest | 25 | 25 | |||||||||
| Common stockholders' equity (shares in thousands): | |||||||||||
| Common stock, $0.001 par value per share: 300,000 shares authorized; 98,288 issued and 98,226 outstanding in 2025 and 97,390 issued and 97,287 outstanding in 2024 | — | — | |||||||||
| Additional paid-in capital | 21,642 | 20,895 | |||||||||
| Treasury stock, at cost; 62 shares in 2025 and 103 shares in 2024 | (24) | (39) | |||||||||
| Accumulated dividends | (12,202) | (10,342) | |||||||||
| Accumulated other comprehensive loss | (1,359) | (1,735) | |||||||||
| Retained earnings | 6,099 | 4,749 | |||||||||
| Total common stockholders' equity | 14,156 | 13,528 | |||||||||
| Non-controlling interests | (3) | (1) | |||||||||
| Total stockholders' equity | 14,153 | 13,527 | |||||||||
| Total liabilities, redeemable non-controlling interest and stockholders' equity | $ | 40,141 | $ | 35,085 |
See accompanying notes to consolidated financial statements.
F-3
EQUINIX, INC.
Consolidated Statements of Operations
(in millions, except share and per share data)
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues | $ | 9,217 | $ | 8,748 | $ | 8,188 | |||||||||||
| Costs and operating expenses: | |||||||||||||||||
| Cost of revenues | 4,508 | 4,467 | 4,228 | ||||||||||||||
| Sales and marketing | 903 | 891 | 855 | ||||||||||||||
| General and administrative | 1,840 | 1,766 | 1,654 | ||||||||||||||
| Restructuring and other exit charges | 33 | 31 | — | ||||||||||||||
| Transaction costs | 18 | 50 | 13 | ||||||||||||||
| Impairment charges | 68 | 233 | — | ||||||||||||||
| (Gain) loss on asset sales | (1) | (18) | (5) | ||||||||||||||
| Total costs and operating expenses | 7,369 | 7,420 | 6,745 | ||||||||||||||
| Income from operations | 1,848 | 1,328 | 1,443 | ||||||||||||||
| Interest income | 193 | 137 | 94 | ||||||||||||||
| Interest expense | (527) | (457) | (402) | ||||||||||||||
| Other income (expense) | (7) | (17) | (11) | ||||||||||||||
| Gain (loss) on debt extinguishment | 1 | (16) | — | ||||||||||||||
| Income before income taxes | 1,508 | 975 | 1,124 | ||||||||||||||
| Income tax expense | (160) | (161) | (155) | ||||||||||||||
| Net income | 1,348 | 814 | 969 | ||||||||||||||
| Net (income) loss attributable to non-controlling interests | 2 | 1 | — | ||||||||||||||
| Net income attributable to common stockholders | $ | 1,350 | $ | 815 | $ | 969 | |||||||||||
| Earnings per share ("EPS") attributable to common stockholders: | |||||||||||||||||
| Basic EPS | $ | 13.79 | $ | 8.54 | $ | 10.35 | |||||||||||
| Weighted-average shares for basic EPS (in thousands) | 97,883 | 95,457 | 93,615 | ||||||||||||||
| Diluted EPS | $ | 13.76 | $ | 8.50 | $ | 10.31 | |||||||||||
| Weighted-average shares for diluted EPS (in thousands) | 98,123 | 95,827 | 94,009 |
See accompanying notes to consolidated financial statements.
F-4
EQUINIX, INC.
Consolidated Statements of Comprehensive Income (Loss)
(in millions)
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 1,348 | $ | 814 | $ | 969 | |||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
| Change in foreign currency translation adjustment ("CTA"): | |||||||||||||||||
| CTA gain (loss) | 753 | (772) | 250 | ||||||||||||||
| Income tax effects | — | — | — | ||||||||||||||
| CTA gain (loss), net of tax | 753 | (772) | 250 | ||||||||||||||
| Change in net investment hedge CTA gain (loss): | |||||||||||||||||
| Net investment hedge CTA gain (loss) | (317) | 289 | (132) | ||||||||||||||
| Income tax effects | (5) | 6 | — | ||||||||||||||
| Net investment hedge CTA gain (loss), net of tax | (322) | 295 | (132) | ||||||||||||||
| Change in unrealized gain (loss) on cash flow hedges: | |||||||||||||||||
| Unrealized gain (loss) on cash flow hedges | (89) | 47 | (24) | ||||||||||||||
| Income tax effects | 34 | (15) | 5 | ||||||||||||||
| Unrealized gain (loss) on cash flow hedges, net of tax | (55) | 32 | (19) | ||||||||||||||
| Total other comprehensive income (loss), net of tax | 376 | (445) | 99 | ||||||||||||||
| Comprehensive income, net of tax | 1,724 | 369 | 1,068 | ||||||||||||||
| Net (income) loss attributable to non-controlling interests | 2 | 1 | — | ||||||||||||||
| Comprehensive income attributable to common stockholders | $ | 1,726 | $ | 370 | $ | 1,068 |
See accompanying notes to consolidated financial statements.
F-5
EQUINIX, INC.
Consolidated Statements of Stockholders' Equity and Other Comprehensive Income (Loss)
For the Three Years Ended December 31, 2025
($ in millions except per share data; share data in thousands)
| Common stock | Treasury stock | Additional Paid-in Capital | Accumulated Dividends | AOCI (Loss) | Retained Earnings | Common Stockholders' Equity | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2022 | 92,814 | $ | — | (193) | $ | (72) | $ | 17,320 | $ | (7,318) | $ | (1,389) | $ | 2,965 | $ | 11,506 | $ | — | $ | 11,506 | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | 969 | 969 | — | 969 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | 99 | — | 99 | — | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock and release of treasury stock for employee equity awards | 793 | — | 42 | 16 | 74 | — | — | — | 90 | — | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock under ATM Program | 1,023 | — | — | — | 734 | — | — | — | 734 | — | 734 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend distribution on common stock,$14.49 per share | — | — | — | — | — | (1,359) | — | — | (1,359) | — | (1,359) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Settlement of accrued dividends on vested equity awards | — | — | — | — | — | (1) | — | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued dividends on unvested equity awards | — | — | — | — | — | (17) | — | — | (17) | — | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, net of estimated forfeitures | — | — | — | — | 468 | — | — | — | 468 | — | 468 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2023 | 94,630 | — | (151) | (56) | 18,596 | (8,695) | (1,290) | 3,934 | 12,489 | — | 12,489 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | — | — | 815 | 815 | (1) | 814 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | (445) | — | (445) | — | (445) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock and release of treasury stock for employee equity awards | 792 | — | 48 | 17 | 76 | — | — | — | 93 | — | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock under ATM Program | 1,968 | — | — | — | 1,673 | — | — | — | 1,673 | — | 1,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend distribution on common stock, $17.04 per share | — | — | — | — | — | (1,624) | — | — | (1,624) | — | (1,624) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Settlement of accrued dividends on vested equity awards | — | — | — | — | — | (2) | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued dividends on unvested equity awards | — | — | — | — | — | (21) | — | — | (21) | — | (21) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, net of estimated forfeitures | — | — | — | — | 546 | — | — | — | 546 | — | 546 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contribution from non-controlling interest | — | — | — | — | 4 | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 97,390 | — | (103) | (39) | 20,895 | (10,342) | (1,735) | 4,749 | 13,528 | (1) | 13,527 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | 1,350 | 1,350 | (2) | 1,348 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | 376 | — | 376 | — | 376 |
F-6
EQUINIX INC.
Consolidated Statements of Stockholders' Equity and Other Comprehensive Income (Loss) - Continued
For the Three Years Ended December 31, 2025
($ in millions except per share data; share data in thousands)
| Common stock | Treasury stock | Additional Paid-in Capital | Accumulated Dividends | AOCI (Loss) | Retained Earnings | Common Stockholders' Equity | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Additional Paid-in Capital | Accumulated Dividends | AOCI (Loss) | Retained Earnings | Common Stockholders' Equity | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock and release of treasury stock for employee equity awards | 791 | — | 41 | 15 | 80 | — | — | — | 95 | — | 95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock under ATM Program | 107 | — | — | — | 99 | — | — | — | 99 | — | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend distribution on common stock, $18.76 per share | — | — | — | — | — | (1,835) | — | — | (1,835) | — | (1,835) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Settlement of accrued dividends on vested equity awards | — | — | — | — | — | (2) | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued dividends on unvested equity awards | — | — | — | — | — | (23) | — | — | (23) | — | (23) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, net of estimated forfeitures | — | — | — | — | 564 | — | — | — | 564 | — | 564 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contribution from non-controlling interest | — | — | — | — | 4 | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | 98,288 | $ | — | (62) | $ | (24) | $ | 21,642 | $ | (12,202) | $ | (1,359) | $ | 6,099 | $ | 14,156 | $ | (3) | $ | 14,153 |
See accompanying notes to consolidated financial statements.
F-7
EQUINIX, INC.
Consolidated Statements of Cash Flows
(in millions)
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 1,348 | $ | 814 | $ | 969 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation, amortization and accretion | 2,066 | 2,011 | 1,844 | ||||||||||||||
| Stock-based compensation | 498 | 462 | 407 | ||||||||||||||
| Impairment charges | 68 | 233 | — | ||||||||||||||
| (Gain) loss on asset sales | (1) | (18) | (5) | ||||||||||||||
| Other operating activities | 33 | 87 | 79 | ||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts receivable | (40) | 27 | (150) | ||||||||||||||
| Income taxes, net | (78) | (9) | 4 | ||||||||||||||
| Operating lease right-of-use assets | 161 | 150 | 139 | ||||||||||||||
| Operating lease liabilities | (156) | (153) | (128) | ||||||||||||||
| Accounts payable and accrued expenses | 25 | 95 | 161 | ||||||||||||||
| Other assets and liabilities | (13) | (450) | (103) | ||||||||||||||
| Net cash provided by operating activities | 3,911 | 3,249 | 3,217 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of equity investments | (60) | (98) | (136) | ||||||||||||||
| Distributions from equity investments | 59 | 11 | — | ||||||||||||||
| Purchases of short-term investments | (1,967) | (520) | — | ||||||||||||||
| Maturity of short-term investments | 1,005 | — | — | ||||||||||||||
| Business acquisitions, net of cash and restricted cash acquired | (251) | — | — | ||||||||||||||
| Real estate acquisitions | (994) | (337) | (384) | ||||||||||||||
| Purchases of other property, plant and equipment | (4,311) | (3,066) | (2,781) | ||||||||||||||
| Proceeds from sale of assets, net of cash transferred | — | 247 | 77 | ||||||||||||||
| Settlement of foreign currency hedges | 104 | 83 | — | ||||||||||||||
| Investment in loan receivable | (69) | (261) | — | ||||||||||||||
| Loan receivable upfront fee | — | 4 | — | ||||||||||||||
| Net cash used in investing activities | (6,484) | (3,937) | (3,224) | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from employee equity awards | 95 | 91 | 87 | ||||||||||||||
| Payment of dividends | (1,856) | (1,643) | (1,375) | ||||||||||||||
| Proceeds from public offering of common stock, net of issuance costs | 99 | 1,673 | 734 | ||||||||||||||
| Proceeds from senior notes, net of debt discounts | 4,311 | 2,768 | 902 | ||||||||||||||
| Repayments of finance lease liabilities | (155) | (140) | (149) | ||||||||||||||
| Contribution from non-controlling interest | 4 | 4 | 25 | ||||||||||||||
| Repayment of senior notes | (1,200) | (1,000) | — | ||||||||||||||
| Other financing activities | (26) | (30) | (13) | ||||||||||||||
| Net cash provided by financing activities | 1,272 | 1,723 | 211 | ||||||||||||||
| Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | 43 | (49) | (16) | ||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (1,258) | 986 | 188 | ||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 3,082 | 2,096 | 1,908 | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,824 | $ | 3,082 | $ | 2,096 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Cash paid for taxes, net | $ | 207 | $ | 185 | $ | 153 | |||||||||||
| Cash paid for interest, net of amounts capitalized | $ | 448 | $ | 486 | $ | 445 | |||||||||||
| Cash and cash equivalents | $ | 1,727 | $ | 3,081 | $ | 2,096 | |||||||||||
| Current portion of restricted cash included in other current assets | 60 | 1 | — | ||||||||||||||
| Non-current portion of restricted cash included in other assets | 37 | — | — | ||||||||||||||
| Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | 1,824 | $ | 3,082 | $ | 2,096 | |||||||||||
See accompanying notes to consolidated financial statements.
F-8
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Nature of Business and Summary of Significant Accounting Policies
Nature of Business
Equinix, Inc. ("Equinix," the "Company," "we," "our," or "us") was incorporated in Delaware on June 22, 1998. Equinix provides colocation space and related offerings. Global enterprises, content providers, financial companies and network service providers rely upon Equinix's insight and expertise to safehouse and connect their most valued information assets. We operate International Business ExchangeTM ("IBX®") data centers, or IBX data centers, across the Americas, Europe, Middle East and Africa ("EMEA") and Asia-Pacific geographic regions where customers directly interconnect with a network ecosystem of partners and customers. More than 2,000 network service providers offer access to the world's internet routes inside our IBX data centers. This access to internet routes provides Equinix customers improved reliability and streamlined connectivity while significantly reducing costs by reaching a critical mass of networks within a centralized physical location. We also invest in data center joint ventures or partnerships where we perform a variety of services described in Note 5. As of December 31, 2025, we controlled and operated 255 IBX data centers in 75 markets around the world.
We have been operating as a real estate investment trust for federal income tax purposes ("REIT") effective January 1, 2015. See "Income Taxes" in Note 13 below for additional information.
Basis of Presentation
The accompanying consolidated financial statements and accompanying notes are prepared in accordance with the accounting principles generally accepted in the United States of America ("GAAP") and are presented in our reporting currency, the U.S. dollar. The consolidated financial statements include the accounts of Equinix and its subsidiaries, including the acquisition of TIM NextGen DC Corporation from Total Information Management (“TIM”) and Zenutna Development & Realty Corporation ("ZDRC") on June 2, 2025.
Certain prior period amounts have been reclassified in the consolidated financial statements to conform with current year presentation.
Intercompany accounts and transactions have been eliminated in consolidation.
Consolidation
We consolidate all entities that are wholly owned and those entities where we own less than 100% of the equity but we control the entity. We consolidate all Variable Interest Entities (“VIEs”) for which we are the primary beneficiary. A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the power to direct activities that most significantly impact the economic performance of the VIE, or (iii) has equity investors who lack the obligation to absorb the excepted losses or right to receive the expected residual returns of the VIE, or (iv) substantially all activities involve an equity investor with disproportionately few voting rights. We are considered the primary beneficiary of a VIE if we have (i) the power to direct activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. When determining whether we are the primary beneficiary of a VIE, we consider all relationships between us and the VIE, including management agreements and other contractual arrangements as well as rights held by other variable interest holders.
For the entities that are not VIEs, we first assess whether the entity is similar to a corporation or a limited partnership. We consolidate entities that are structured similar to corporations if we have a controlling financial interest (i.e. ownership of over 50% of the outstanding voting shares) unless the control does not rest with us as a majority owner due to substantive participating rights held by other shareholders or other factors. We may also consolidate a less-than-majority-owned entity if we control the board of directors which makes the significant decisions of the entity or we control the entity through contractual arrangements. For the entities that are structured similar to limited partnerships, we consolidate if we are the general partner and the limited partners do not hold substantive participating or kick-out rights that would preclude us from exercising control over the entity. We may also consolidate if we are the limited partner and we hold unilateral kick-out rights.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. On an ongoing basis, we evaluate our estimates, including, but not limited to, those related to the allowance for credit losses, fair values of financial and derivative instruments, intangible assets and goodwill, assets acquired and liabilities assumed from acquisitions, useful lives of intangible assets and property, plant and equipment, leases, asset retirement obligations, other accruals and income taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable.
Cash, Cash Equivalents and Short-Term Investments
We consider all highly liquid instruments with an original maturity from the date of purchase of 3 months or less to be cash equivalents. Cash equivalents generally consist of money market mutual funds, certificates of deposit and U.S. government securities with original maturities of 3 months or less. Short-term investments generally consist of certificates of deposit and U.S. government securities with original maturities of between 3 months and 1 year.
Equity Method Investments
We use the equity method to account for investments in entities for which we have the ability to exercise significant influence over their operating and financial policies, but do not control. These include our investments in VIEs where we are not the primary beneficiary, and certain investments in other joint ventures or partnerships that are not VIEs.
Equity method investments are initially measured at cost, or at fair value when the investment represents a retained equity interest in a deconsolidated business or derecognized distinct non-financial assets. Equity investments are subsequently adjusted for cash contributions, distributions and our share of the income and losses of the investees. We record our equity method investments in other assets in the consolidated balance sheets. Our proportionate shares of the income or loss from our equity method investments are recorded in other income (expense) in the consolidated statements of operations. We use the cumulative earnings approach to determine whether distributions received from equity method investees are returns on investment and classified as operating cash inflows or returns of investment and reported as investing cash flows.
We review our equity method investments whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable to determine if any investments may be other-than-temporarily impaired. We consider both qualitative and quantitative factors that may have a significant impact on the investees' fair value or the ability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. We did not record any impairment charges related to our equity method investments for the years ended December 31, 2025, 2024 and 2023. For further information on our equity method investments, see Note 5.
Non-marketable Equity Investments
We also have investments in non-marketable equity securities, where we do not have the ability to exercise significant influence over the investees. We elected the measurement alternative under which the securities are measured at cost less impairment, if any, and adjusted for changes resulting from qualifying observable price changes. We record non-marketable equity investments in other assets in the consolidated balance sheets. The amounts were insignificant as of December 31, 2025 and 2024.
We review our non-marketable equity investments quarterly to determine if any investments may be impaired considering both qualitative and quantitative factors that may have a significant impact on the investees' fair value. We did not record any impairment charges related to our non-marketable equity investments for the years ended December 31, 2025, 2024 and 2023.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Financial Instruments and Concentration of Credit Risk
Financial instruments which potentially subject us to concentrations of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable, contract assets and our loan receivable. Risks associated with cash and cash equivalents and short-term investments are mitigated by our investment policy, which limits our investing to only money market funds, U.S. government agency and treasury notes, government sponsored enterprise and bank money instruments rated at least A-1/P-1 Short Term Rating or A-/A3 Long Term Rating, as determined by independent credit rating agencies. Credit risk from our accounts receivable and contract assets is not considered concentrated since our customer base is widely dispersed across our three geographical regions with no single customer accounting for a significant portion of our revenues.
We review our investment portfolio quarterly to determine if any securities may be other-than-temporarily impaired due to increased credit risk, changes in industry or sector of a certain instrument or ratings downgrades.
The credit risk associated with our loan receivable is mitigated by the fair value of collateral securing the loan. We estimate expected credit losses (“ECL”) by considering all available information relevant to assessing the collectibility of cash flows. In developing an estimate of ECL, we start with historical credit loss experience of financial assets with similar risk characteristics and adjust the historical loss information to reflect asset-specific risk characteristics as well as our expectation of current conditions and reasonable and supportable forecasts.
Property, Plant and Equipment
Property, plant and equipment are measured at our original cost or initial fair value for property, plant and equipment acquired through business combinations, net of depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Buildings under finance leases, leasehold improvements and integral equipment at leased locations are amortized over the shorter of the lease term or the estimated useful life of the asset or improvement.
We capitalize certain internal and external costs associated with the development and purchase of internal-use software in property, plant and equipment, net on the consolidated balance sheets. This includes costs incurred in cloud computing arrangements ("CCA"), where it is both feasible and contractually permissible without significant penalty for us to take possession of the software. All other CCAs are considered service contracts, and the licensing and implementation costs incurred associated with such contracts are capitalized in other assets on the consolidated balance sheets. Capitalized internal-use software costs and capitalized implementation costs are amortized on a straight-line basis over the estimated useful lives of the software or arrangements.
Our estimated useful lives of property, plant and equipment are generally as follows:
| Core systems | 3 | - | 40 years | ||||||||
| Buildings | 12 | - | 60 years | ||||||||
| Leasehold improvements | 12 | - | 40 years | ||||||||
| Personal Property | 3 | - | 10 years | ||||||||
| Capitalized internal-use software | 3 | - | 5 years |
Our construction in progress includes direct and indirect expenditures for the construction and expansion of IBX data centers and is stated at original cost. We contract out substantially all of the construction and expansion efforts of our IBX data centers to independent contractors under construction contracts. Construction in progress includes costs incurred under construction contracts including project management services, engineering and schematic design services, design development, construction services and other construction-related fees and services. In addition, we capitalize interest costs during the development phase. Once an IBX data center or expansion project becomes operational, these capitalized costs are allocated to certain property, plant and equipment categories and are depreciated over the estimated useful lives of the underlying assets.
We review our property, plant and equipment for impairment together with lease right-of-use assets and finite-lived intangibles at the asset group level. Long-lived asset groups relating to our data centers are generally at the individual data center level. We reassess whether a change to our asset groups is necessary when we experience a significant change in our operations or in the way we utilize long-lived assets that causes a change to the interdependency of cash flows. We review asset groups for potential impairment whenever events or changes in
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
circumstances indicate that the carrying amount of an asset group may not be recoverable, such as a significant decrease in market price of an asset, a significant adverse change in the extent or manner in which an asset or an asset group is being used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of an asset or an asset group or a continuous deterioration of our financial condition. Recoverability of asset groups to be held and used is assessed by comparing the carrying amount of an asset group to estimated undiscounted future net cash flows expected to be generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which its carrying amount exceeds its fair value.
We enter into non-cancellable lease arrangements as the lessee primarily for our data center spaces, office spaces and equipment. Assets acquired through finance leases are included in property, plant and equipment, net on the consolidated balance sheets.
Assets Held for Sale
Assets and liabilities to be disposed of that meet all of the criteria to be classified as held for sale are reported at the lower of their carrying amounts or fair values less costs to sell.
Asset Retirement Costs and Asset Retirement Obligations
Our asset retirement obligations are primarily related to our IBX data centers, of which many are leased under long-term arrangements and are required to be returned to the landlords in their original condition. The majority of our IBX data center leases have been subject to significant development by us in order to convert them from, in most cases, vacant buildings or warehouses into IBX data centers. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Subsequent to the initial measurement, we accrete the liability in relation to the asset retirement obligations over time and the accretion expense is recorded as a cost of revenue. We periodically reassess the estimated amounts and timing of future retirement costs. For further information on our asset retirement obligations, see Note 6.
Goodwill and Other Intangible Assets
We have three reportable segments comprised of the 1) Americas, 2) EMEA and 3) Asia-Pacific geographic regions, which we also determined are our reporting units. Goodwill is not amortized and is tested for impairment at least annually or more often if and when circumstances indicate that goodwill is not recoverable.
Generally, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors considered in the assessment include industry and market conditions, overall financial performance and other relevant events and factors affecting the reporting unit. If, after assessing the qualitative factors, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing a quantitative impairment test is unnecessary. However, if we conclude otherwise, then we are required to perform a quantitative goodwill impairment test. The quantitative impairment test, which is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss. In 2025 and 2024, we elected to bypass the optional qualitative assessment and performed the quantitative assessment for our Americas, EMEA and Asia-Pacific reporting units. In 2023, we performed qualitative assessments for our three reporting units.
Substantially all of our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. Customer relationship intangibles acquired through business combinations represent a substantial majority of our finite-lived intangible assets and generally have estimated useful lives of 10 to 20 years.
As described above, we perform a review of all long-lived assets, including finite-lived intangible assets, at the asset group level for impairment by assessing events or changes in circumstances that indicate the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is assessed by comparing the carrying amount of an asset group to estimated undiscounted future net cash flows expected to be
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which its carrying amount exceeds its fair value. For further information on goodwill and other intangible assets, see Notes 3 and 6.
Debt Issuance Costs
Costs and fees incurred upon debt issuances are capitalized and are amortized over the life of the related debt based on the effective interest method. Such amortization is included as a component of interest expense. Debt issuance costs related to outstanding debt are presented as a reduction of the carrying amount of the debt obligation and debt issuance costs related to the revolving credit facility are presented as other assets. For further information on debt facilities, see Note 10 below.
Derivatives and Hedging Activities
We utilize foreign currency and interest rate derivative instruments as part of our risk management strategy. Foreign currency derivatives help to mitigate the effects of foreign exchange rate fluctuations on (i) our expected revenues and expenses in the EMEA region, (ii) investments in our foreign operations and (iii) certain monetary assets and liabilities denominated in foreign currencies. Interest rate derivatives are used to manage the interest rate risk associated with anticipated fixed-rate debt issuances.
These measures allow us to effectively control our financial exposure and are not used for speculative purposes. We recognize all derivatives on our consolidated balance sheets at fair value. The accounting for changes in the value of a derivative depends on whether the contract qualifies and has been designated for hedge accounting. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged and there must be documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and the effectiveness assessment methodology. Hedge designations are reviewed on a quarterly basis to assess whether circumstances have changed that would disrupt the hedging instrument's relationship to the forecasted transactions or net investment.
Cash Flow Hedges
The instruments we designate as cash flow hedges include foreign currency forwards, cross-currency swaps and interest rate locks. For cash flow hedges, we use a regression analysis at the time they are designated to assess their effectiveness.
We enter into intercompany foreign currency forward contracts ("intercompany derivatives") with our wholly-owned subsidiaries in our EMEA region in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. dollar (primarily the British pound and the euro). Simultaneously, we enter into foreign currency forward contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. We designate the intercompany derivatives as cash flow hedges. We use the forward method to assess effectiveness of qualifying foreign currency forwards that are designated as cash flow hedges, whereby the change in the fair value of the derivative is recorded in other comprehensive income (loss) and reclassified to the same line item in the consolidated statements of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings.
We also utilize cross-currency interest rate swaps, which we designate as cash flow hedges, to manage the foreign currency exposure associated with a portion of our foreign currency-denominated variable-rate debt and our U.S. dollar-denominated fixed-rate debt issued by our foreign subsidiaries. We assess the effectiveness of cross-currency interest rate swaps that are designated as cash flow hedges using the spot method. Fair value changes from spot rates are recognized in other comprehensive income (loss) initially and immediately reclassified to earnings to offset the gain or loss from remeasuring the associated debt. We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).
We use interest rate derivative instruments such as treasury locks and swap locks, collectively referred to as "interest rate locks", to manage interest rate exposure created by anticipated fixed-rate debt issuances. An interest rate lock is a synthetic forward sale of a benchmark interest rate, which is settled in cash based upon the difference
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
between an agreed upon rate at inception and the prevailing benchmark rate at settlement. It effectively fixes the benchmark rate component of an upcoming debt issuance. The interest rate lock transactions are designated as cash flow hedges, with all changes in value recorded in other comprehensive income (loss). Subsequent to settlement, amounts in other comprehensive income (loss) are amortized to interest expense over the term of the interest rate locks.
When two or more derivative instruments in combination are jointly designated as a cash flow hedging instrument, they are treated as a single instrument. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related derivative amounts recorded in other comprehensive income (loss) are immediately recognized in earnings.
We classify cash flows from derivative instruments designated as cash flow hedges in the same category as the cash flows from the item being hedged.
Net Investment Hedges
We use cross-currency swaps, which we designate as net investment hedges, to hedge the currency exposure associated with our net investment in our foreign subsidiaries. We use the spot method to assess effectiveness of cross-currency interest rate swaps that are designated as net investment hedges, whereby the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense through the swap accrual process.
Occasionally, we also use foreign exchange forward contracts, which we designate as net investment hedges, to hedge against the effect of foreign exchange rate fluctuations on a portion of our net investment in foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude forward points from the assessment of hedge effectiveness and amortize the initial value of the excluded component through interest expense. The difference between fair value changes from the excluded component and the amount amortized is recognized in other comprehensive income (loss).
Certain of our customer agreements that are priced in currencies different from the functional or local currencies of the parties involved are deemed to have foreign currency forward contracts embedded in them. These embedded derivatives are separated from their host contracts and carried on our balance sheet at their fair value. The majority of these embedded derivatives arise as a result of our foreign subsidiaries pricing their customer contracts in U.S. dollars. We use these forward contracts embedded within our customer agreements to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries.
Non-designated Hedges
Foreign currency gains or losses associated with derivatives that are not designated as hedging instruments for accounting purposes are recorded within other income (expense) in our consolidated statements of operations.
For further information on derivatives and hedging activities, see Note 7.
Fair Value of Financial Instruments
The carrying values of our cash equivalents held in money market funds and the carrying value of our derivative instruments represent their fair values. The carrying values of our cash equivalents held in time deposits and U.S. government securities and the carrying values of our accounts receivable, accounts payable, accrued expenses and accrued property, plant and equipment approximate their fair values primarily due to the short-term maturity of the related instruments. The fair value of short-term investments held in time deposits and U.S. government securities are estimated by considering observable market prices of similar instruments. The fair value of our debt traded in the public debt market is based on quoted market prices. The fair value of our debt which is not publicly traded is estimated by considering our credit rating, current rates available to us for debt of the same remaining maturities and terms. The fair value of our loan receivable is estimated by discounting the contractual cash flows of the loan, using indicative pricing from third parties for similar instruments and asset-specific yield adjustments for elements such as credit risk.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Fair Value of Non-Financial Assets and Liabilities
We also follow the accounting standard for the measurement of fair value for certain non-financial assets and liabilities on a nonrecurring basis. These include:
-
Non-financial assets and non-financial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent reporting periods;
-
Reporting units and non-financial assets and non-financial liabilities measured at fair value for goodwill impairment tests;
-
Indefinite-lived intangible assets measured at fair value for impairment assessments;
-
Non-financial long-lived assets or asset groups measured at fair value for impairment assessments;
-
Asset retirement obligations initially measured at fair value but not subsequently measured at fair value; and
-
Assets and liabilities classified as held for sale measured at fair value less costs to sell and reported at the lower of the carrying amounts or the fair values less costs to sell.
For further information on fair value measurements, see Note 8.
Leases
We enter into lease arrangements primarily for land, data center spaces, office spaces and equipment. At its inception, we determine whether an arrangement is or contains a lease. We recognize a right-of-use ("ROU") asset and lease liability on the consolidated balance sheets for all leases with a term longer than 12 months, including renewal options that we are reasonably certain to exercise.
ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are classified and recognized at the commencement date. When there is a lease modification or a change in lease term triggered by a reassessment event, we reassess its classification and remeasure the ROU asset and lease liability.
Lease liabilities are measured based on the present value of fixed lease payments over the lease term. ROU assets consist of (i) initial measurement of the lease liability, (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received and (iii) initial direct costs incurred by us. Lease payments may vary because of changes in facts or circumstances occurring after the commencement, including changes in inflation indices. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included in the measurement of ROU assets and lease liabilities using the index or rate at the commencement date. Subsequent changes to lease payments based on changes to the index and rate are accounted for as variable lease payments and recognized in the period they are incurred. Variable lease payments that do not depend on an index or a rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Since most of our leases do not provide an implicit rate, we use our own incremental borrowing rate ("IBR") on a collateralized basis in determining the present value of lease payments. We utilize a market-based approach to estimate the IBR. The approach requires significant judgment. Therefore, we utilize different data sets to estimate IBRs via an analysis of (i) sovereign rates, (ii) yields on our outstanding public debt and (iii) indicative pricing on both secured and unsecured debt received from banking partners. We also apply adjustments to account for considerations related to (i) tenor and (ii) country credit ratings that may not be fully incorporated by the aforementioned data sets.
The majority of our lease arrangements include options to extend the lease. If we are reasonably certain to exercise such options, the periods covered by the options are included in the lease term. The depreciable lives of certain fixed assets and leasehold improvements are limited by the expected lease term. We have certain leases with a term of 12 months or less. For such leases, we elected not to recognize any ROU asset or lease liability on the consolidated balance sheets. We have lease agreements with lease and non-lease components. We elected to account for the lease and non-lease components as a single lease component for all classes of underlying assets for which we have identified as lease arrangements.
As described above, we perform a review of all long-lived assets, including ROU assets, at the asset group level for impairment by assessing events or changes in circumstances that indicate the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is assessed by comparing the carrying amount of an asset group to estimated undiscounted future net cash flows expected to be generated by the
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which its carrying amount exceeds its fair value. For further information on leases, see Note 9.
Revenue
Revenue Recognition
We derive more than 90% of our revenues from recurring revenue streams, consisting primarily of (1) colocation, which includes the licensing of cabinet space and power; (2) interconnection offerings; (3) managed infrastructure solutions and (4) other revenues consisting of rental income from tenants or subtenants. The remainder of our revenues are from non-recurring revenue streams, such as installation revenues, professional service fees including from our joint ventures, contract settlements and equipment sales. Revenues by product lines and geographic regions are included in segment information in Note 18.
Revenues are recognized when control of these products and services is transferred to its customers, in an amount that reflects the consideration we expect to be entitled to in exchange for the products and services. Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally 1 to 5 years for IBX data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term. Professional service fees and equipment sales are recognized in the period when the services were provided. For the contracts with customers that contain multiple performance obligations, we account for individual performance obligations separately if they are distinct or as a series of distinct obligations if the individual performance obligations meet the series criteria. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The transaction price is allocated to the separate performance obligation on a relative standalone selling price basis. The standalone selling price is determined based on overall pricing objectives, taking into consideration market conditions, geographic locations and other factors. Other judgments include determining if any variable consideration should be included in the total contract value of the arrangement such as price increases.
Revenue is generally recognized on a gross basis as a principal versus on a net basis as an agent, as we are primarily responsible for fulfilling the contract, bear inventory risk and have discretion in establishing the price when selling to the customer. To the extent we do not meet the criteria for recognizing revenue on a gross basis, we record the revenue on a net basis. Revenue from contract settlements, when a customer wishes to terminate their remaining contract early, is treated as a contract modification and recognized ratably over the remaining term of the contract, if any.
We guarantee certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within our IBX data centers, we would reduce revenue for any credits or cash payments given to the customer. Historically, these credits and cash payments have not been significant.
We enter into revenue contracts with customers for data centers and office space that contain both lease and non-lease components. We elected to adopt the practical expedient which allows lessors to combine lease and non-lease components, by underlying class of asset, and account for them as one component if they have the same timing and pattern of transfer. The combined component is accounted for in accordance with the current lease accounting guidance ("Topic 842") if the lease component is predominant, and in accordance with the current revenue accounting guidance ("Topic 606") if the non-lease component is predominant. In general, customer contracts for data centers are accounted for under Topic 606 and customer contracts for the use of office space are accounted for under Topic 842, which are generally classified as operating leases and are recognized on a straight-line basis over the lease term.
As part of our ongoing involvement in our xScaleTM joint venture equity method investments, we enter into certain contracts with these ventures to provide our data center expertise in exchange for professional service fee revenue. Such services include development and construction management, sales and marketing, facilities management, asset management and procurement. In general, the revenue is recognized as the services are performed. Revenue for certain services, such as sales and marketing, are recognized at a point in time. In addition,
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
the revenue for the sales and marketing fees may be recognized several years in advance of payment from the xScale joint ventures, as payment is often tied to deployment of the customer.
Certain customer agreements are denominated in currencies other than the functional currencies of the parties involved. Under applicable accounting rules, we are deemed to have foreign currency forward contracts embedded in these contracts. We assessed these embedded contracts and concluded them to be foreign currency embedded derivatives (see Note 7). These instruments are separated from their host contracts and held on our consolidated balance sheets at their fair value. The majority of these foreign currency embedded derivatives arise in certain of our subsidiaries where the local currency is the subsidiary's functional currency and the customer contract is denominated in the U.S. dollar. For certain contracts, we use these forward contracts embedded within our customer agreements to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. Please see Note 7 for further discussion of these hedges. For all other customer contracts containing embedded derivatives, changes in their fair values are recognized within revenues in our consolidated statements of operations.
Contract Balances
The timing of revenue recognition, billings and cash collections result in accounts receivables, contract assets and deferred revenues. A receivable is recorded at the invoice amount, net of an allowance for credit losses and is recognized in the period when we have transferred products or provided services to our customers and when its right to consideration is unconditional. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 45 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. We assess collectability based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer. We generally do not request collateral from our customers although in certain cases we obtain a security interest in a customer's equipment placed in our IBX data centers or obtain a deposit. We also maintain an allowance for estimated losses on a lifetime loss basis resulting from the inability of our customers to make required payments for which we had expected to collect the revenues in accordance with the credit loss accounting guidance ("Topic 326"). If the financial condition of our customers were to deteriorate or if they became insolvent, resulting in an impairment of their ability to make payments, greater allowances for credit losses may be required. We specifically analyze current economic news, conditions and trends, historical loss rates, customer concentrations, customer credit-worthiness, changes in customer payment terms and any applicable long-term forecast when evaluating revenue recognition and the adequacy of our reserves for our accounts receivable. Any amounts that were previously recognized as revenue and subsequently determined to be uncollectible are charged to bad debt expense included in sales and marketing expense in the consolidated statements of operations. A specific bad debt reserve of up to the full amount of a particular invoice value is provided for certain problematic customer balances. An additional reserve is established for all other accounts based on an analysis of historical credits issued. Delinquent account balances are written off after management has determined that the likelihood of collection is not probable.
A contract asset exists when we have transferred products or provided services to our customers but customer payment is conditioned on reasons other than the passage of time, such as upon the satisfaction of additional performance obligations. Certain contracts include terms related to price arrangements such as price increases and free months. We recognize revenues ratably over the contract term, which could potentially give rise to contract assets during certain periods of the contract term. Contract assets are recorded in other current assets and other assets, respectively, in the consolidated balance sheets.
Deferred revenue (a contract liability) is recognized when we have an unconditional right to a payment before we transfer the products or services to customers. Deferred revenue is included in other current liabilities and other liabilities, respectively, in the consolidated balance sheets.
Contract Costs
Direct and indirect incremental costs solely related to obtaining revenue contracts are capitalized as costs of obtaining a contract when they are incremental and if they are expected to be recovered. Such costs consist primarily of commission fees and sales bonuses, as well as indirect related payroll costs. In 2025, contract costs were amortized over the estimated period of approximately 7 years on a straight-line basis. We elected to apply the
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
practical expedient which allows us to expense contract costs when incurred if the amortization period is one year or less.
For further information on revenue recognition, see Note 2 below.
Income Taxes
Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on the future tax consequences attributable to differences that exist between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as tax attributes such as net operating loss, capital loss and tax credits carryforwards on a taxing jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled, and the tax attributes to be utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. A tax benefit from an uncertain income tax position may be recognized in the financial statements only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. Recognized income tax positions are measured at the largest amount that has a greater than 50 percent likelihood of being realized. Any subsequent changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
We elected to be taxed as a REIT for U.S. federal income tax purposes beginning with our 2015 taxable year. As a result, we may deduct the dividends distributed to our stockholders from taxable income generated by us and that of our qualified REIT subsidiaries ("QRSs"). Our dividends paid deduction generally eliminates the U.S. federal taxable income of our REIT and QRSs, resulting in no U.S. federal income tax due. However, our domestic taxable REIT subsidiaries ("TRSs") are subject to the U.S. corporate income taxes on any taxable income generated by them. In addition, our foreign operations are subject to local income taxes regardless of whether the foreign operations are operated as QRSs or TRSs for U.S. income tax purposes.
Our qualification and taxation as a REIT depend on our satisfaction of certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis. Our ability to satisfy quarterly asset tests depends upon our analysis and the fair market values of our REIT and non-REIT assets. For purposes of the quarterly REIT asset tests, we estimate the fair market value of assets within our QRSs and TRSs using a discounted cash flow approach, by calculating the present value of forecasted future cash flows. We apply discount rates based on industry benchmarks relative to the market and forecasting risks. Other significant assumptions used to estimate the fair market value of assets in QRSs and TRSs include projected revenue growth, projected operating margins, and projected capital expenditures.
For further information on income taxes, see Note 13 below.
Stock-Based Compensation
Stock-based compensation cost is measured at the grant date for all stock-based awards made to employees and directors based on the fair value of the award. We generally recognize stock-based compensation expense on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. However, for awards with market conditions or performance conditions, stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each vesting tranche of the award. We elected to estimate forfeitures based on historical forfeiture rates.
We grant restricted stock units ("RSUs") to our employees and these equity awards generally have only a service condition. We grant RSUs to our executives that generally have a service and performance condition or a service and market condition. Performance conditions contained in an equity award are generally tied to our financial performance. We assess the probability of meeting these performance conditions on a quarterly basis. The majority of our RSUs vest over four years, although certain equity awards for executives vest over a range of two to four years. The valuation of RSUs with only a service condition or a service and performance condition requires no significant assumptions as the fair value for these types of equity awards is based solely on our stock price on the date of grant. We use a Monte Carlo simulation option-pricing model to determine the fair value of RSUs with a service and market condition.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
We use the Black-Scholes option-pricing model to determine the fair value of our employee stock purchase plan ("ESPP"). The determination of the fair value of shares purchased under the ESPP is affected by assumptions regarding a number of complex and subjective variables including our expected stock price volatility over the term of the awards and actual and projected employee stock purchase behaviors. We estimated the expected volatility by using the average historical volatility of its common stock that it believed was best representative of future volatility. The risk-free interest rate used was based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term of the equity awards. The expected dividend rate used was based on average dividend yields and the expected term used was equal to the term of each purchase window.
The accounting standard for stock-based compensation does not allow the recognition of unrealized tax benefits associated with the tax deductions in excess of the compensation recorded (excess tax benefit) until the excess tax benefit is realized (i.e., reduces taxes payable). We record the excess tax benefits from stock-based compensation as income tax expense through the statement of operations. For further information on stock-based compensation, see Note 12 below.
Foreign Currency Transactions
The financial position of foreign subsidiaries where the local currency is the functional currency is translated using the exchange rates in effect at the end of the period, while income and expense items are translated at average exchange rates during the period. These translation gains or losses are included as other comprehensive income (loss). Certain intercompany balances are designated as loans of a long-term investment-type nature. Accordingly, exchange gains and losses associated with these long-term intercompany balances are recorded as a component of other comprehensive income (loss), along with translation adjustments.
Foreign exchange gains or losses resulting from foreign currency transactions, including intercompany foreign currency transactions that are anticipated to be repaid within the foreseeable future, are reported within other income (expense) on our accompanying consolidated statements of operations.
For additional information on the impact of foreign currencies to our consolidated financial statements, see "Accumulated Other Comprehensive Loss" in Note 11.
Earnings Per Share
We compute basic and diluted EPS for net income. Basic EPS is computed using net income and the weighted-average number of common shares outstanding. Diluted EPS is computed using net income and the weighted-average number of common shares outstanding plus any dilutive potential common shares outstanding. Dilutive potential common shares include the assumed vesting and issuance activity of employee equity awards using the treasury stock method. For further information on earnings per share, see Note 4 below.
Treasury Stock
We account for treasury stock under the cost method. When treasury stock is re-issued at a higher price than its cost, the difference is recorded as a component of additional paid-in capital to the extent that there are gains to offset the losses. If there are no treasury stock gains in additional paid-in capital, the losses are recorded as a component of retained earnings.
Recent Accounting Pronouncements
Accounting Standards Not Yet Adopted
In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03: Disaggregation of Income Statement Expenses ("DISE"). The ASU requires additional disclosure of the nature of expenses included in the income statement. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. We are currently evaluating the extent of the impact of this ASU on disclosures in our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06: Targeted Improvements to the Accounting for Internal-Use Software. The ASU is intended to increase the operability of the recognition guidance for internal-use software
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
considering different methods of software development. The ASU is effective for annual and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The ASU permits prospective, retrospective or modified retrospective application. We are currently evaluating the extent of the impact of this ASU on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The ASU is intended to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The ASU is effective for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The ASU permits prospective or retrospective application. We are currently evaluating the extent of the impact of this ASU on disclosures in our consolidated financial statements.
Accounting Standards Recently Adopted
Income Taxes
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. We adopted this ASU on a prospective basis for the 2025 annual reporting period. Refer to Note 13 for disclosures required by this ASU.
2. Revenue
Contract Balances
The following table summarizes the opening and closing balances of our accounts receivable, net; contract assets, current; contract assets, non-current; deferred revenue, current; and deferred revenue, non-current (in millions):
| Accounts receivable, net | Contract assets, current | Contract assets, non-current | Deferred revenue, current | Deferred revenue, non-current | |||||||||||||||||||||||||
| Beginning balances as of January 1, 2025 | $ | 949 | $ | 102 | $ | 113 | $ | 123 | $ | 150 | |||||||||||||||||||
| Closing balances as of December 31, 2025 | 1,001 | 56 | 126 | 133 | 170 | ||||||||||||||||||||||||
| Increase (Decrease) | $ | 52 | $ | (46) | $ | 13 | $ | 10 | $ | 20 | |||||||||||||||||||
| Beginning balances as of January 1, 2024 | $ | 1,004 | $ | 52 | $ | 86 | $ | 125 | $ | 154 | |||||||||||||||||||
| Closing balances as of December 31, 2024 | 949 | 102 | 113 | 123 | 150 | ||||||||||||||||||||||||
| Increase (Decrease) | $ | (55) | $ | 50 | $ | 27 | $ | (2) | $ | (4) |
The difference between the opening and closing balances of our accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of our performance obligation and the customer's payment. The amounts of revenue recognized during the years ended December 31, 2025, 2024 and 2023 from the opening deferred revenue balance were $101 million, $88 million and $95 million, respectively. For the years ended December 31, 2025, 2024 and 2023, no impairment loss related to contract balances was recognized in the consolidated statements of operations.
Contract Costs
The ending balances of net capitalized contract costs as of December 31, 2025 and 2024 were $503 million and $436 million, respectively, which were included in other assets in the consolidated balance sheets. $119 million, $122 million, and $103 million of contract costs were amortized during years ended December 31, 2025, 2024 and 2023, respectively, which were included in sales and marketing expense in the consolidated statements of operations.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Remaining Performance Obligations
Approximately $13.6 billion of revenues, including deferred installation revenues, are expected to be recognized in future periods related to unsatisfied performance obligations as of December 31, 2025. Most of our revenue contracts have an initial term varying from one to five years, and thereafter, automatically renew in one-year increments. Included in the remaining performance obligations are contracts that are either under the initial term or under one-year renewal periods. We expect to recognize approximately 65% of our remaining performance obligations as revenues over the next two years, with more revenues expected to be recognized in the first year due to the impact of contract renewals. The remainder of the balance is generally expected to be recognized over the next three to five years. We estimate our remaining performance obligations at a point in time. Actual amounts and timing of revenue recognition may differ from these estimates due to changes in actual deployment dates, contract modifications, scheduled price increases, renewals and/or terminations.
The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScale® data centers that are based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties including the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where we are considered the lessor.
3. Acquisitions
Acquisition of TIM NextGen DC Corporation (the "TIM Acquisition")
On June 2, 2025, we completed the acquisition of all outstanding shares of TIM NextGen DC Corporation from TIM and ZDRC, consisting of three data centers in the Philippines, for total purchase consideration of $183 million. The TIM Acquisition supports our ongoing expansion to meet customer demand in the Asia-Pacific market.
We incurred insignificant transaction costs and recognized insignificant revenues and net income from the TIM Acquisition during the year ended December 31, 2025.
Purchase Price Allocation
The TIM Acquisition was accounted for as a business combination using the acquisition method of accounting. Under this method, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition, except where alternative measurement is required under GAAP.
During the year ended December 31, 2025, we completed the detailed valuation analysis and the final allocation of purchase price for the TIM Acquisition.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
A summary of the allocation of total purchase consideration is presented as follows (in millions):
| TIM Acquisition | |||||
| Total Purchase Consideration | $ | 183 | |||
| Identifiable assets acquired and liabilities assumed | |||||
| Property, plant and equipment | 42 | ||||
| Intangible assets | 21 | ||||
| Other assets | 4 | ||||
| Liabilities | (11) | ||||
| Total identifiable net assets | 56 | ||||
| Goodwill | 127 | ||||
| Net assets acquired | $ | 183 |
Property, plant and equipment - The fair values of property, plant and equipment acquired from the TIM Acquisition were estimated by applying the cost approach. The key assumptions of the cost approach include replacement cost (new), physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age.
Intangible assets - The following table presents certain information on the acquired intangible assets (in millions):
| Intangible Assets | Fair Value | Estimated Useful Lives (Years) | Discount Rate | |||||||||||||||||
| Customer relationships (1) | $ | 21 | 15.0 | 12.5 | % |
(1)The fair value of the customer relationships were estimated by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The discount rates reflect the nature of the assets, the uncertainty of the estimated future operating cash flows, as well as the risk of the country within which the acquired business operates.
Goodwill
Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the acquisition, including on expansion capacity acquired. Goodwill is attributable to the Asia-Pacific region and is generally not deductible for local tax purposes.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
4. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the years ended December 31 ($ in millions except per share data; share data in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 1,348 | $ | 814 | $ | 969 | |||||||||||
| Net (income) loss attributable to non-controlling interests | 2 | 1 | — | ||||||||||||||
| Net income attributable to common stockholders | $ | 1,350 | $ | 815 | $ | 969 | |||||||||||
| Weighted-average shares used to calculate basic EPS | 97,883 | 95,457 | 93,615 | ||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||
| Employee equity awards | 240 | 370 | 394 | ||||||||||||||
| Weighted-average shares used to calculate diluted EPS | 98,123 | 95,827 | 94,009 | ||||||||||||||
| EPS attributable to common stockholders: | |||||||||||||||||
| Basic EPS | $ | 13.79 | $ | 8.54 | $ | 10.35 | |||||||||||
| Diluted EPS | $ | 13.76 | $ | 8.50 | $ | 10.31 |
The following table sets forth potential shares of common stock that are not included in the diluted EPS calculation above because to do so would be anti-dilutive for the years ended December 31 (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Common stock related to employee equity awards | 398 | 359 | 68 |
5. Equity Method Investments
We hold various equity method investments, primarily interests in joint venture partnership arrangements, in order to invest in certain entities that are in line with our business development objectives, including the development and operation of xScale data centers. Some of these joint ventures are classified as Variable Interest Entities ("VIEs").
The following table summarizes our equity method investments, which were included in other assets on the consolidated balance sheets as of December 31 (in millions):
| Investee | Ownership Percentage | 2025 | 2024 | |||||||||||||||||
| EMEA 1 Joint Venture | 20% | $ | 141 | $ | 131 | |||||||||||||||
| VIE Joint Ventures (1) | 20% | 395 | 374 | |||||||||||||||||
| Other | Various | 15 | 14 | |||||||||||||||||
| Total | $ | 551 | $ | 519 |
(1)Includes investments in the following xScale joint ventures in each of our three regions: "Asia-Pacific 1 Joint Venture", "Asia-Pacific 2 Joint Venture", "Asia-Pacific 3 Joint Venture", "EMEA 2 Joint Venture", "AMER 1 Joint Venture" and "AMER 2 Joint Venture". These investments share a similar purpose, design and nature of assets.
EMEA 1 Joint Venture
The EMEA 1 Joint Venture is not a VIE given that both equity investors' interests have the characteristics of a controlling financial interest and it is sufficiently capitalized to sustain its operations, requiring additional funding from its partners only when expanding operations. Our share of income and losses of equity method investments from this joint venture was insignificant for the years ended December 31, 2025, 2024 and 2023 and was included in other income (expense) on the consolidated statements of operations.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
VIE Joint Ventures
The VIE Joint Ventures are considered VIEs because they do not have sufficient funds from operations to be self-sustaining. While we provide certain management services to their operations and earn fees for the performance of such services, the power to direct the activities of these joint ventures that most significantly impact economic performance is shared equally between us and our partners. These activities include data center construction and operations, sales and marketing, financing, and real estate purchases or sales. Decisions about these activities require the consent of both Equinix and our partners. We concluded that neither party is deemed to have predominant control over the VIE Joint Ventures and neither party is considered to be the primary beneficiary.
The following table summarizes our share of income (losses) related to equity method investments from the VIE Joint Ventures, which were included in other income (expense) on the consolidated statements of operations (in millions):
| Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Share of income (losses) | $ | (17) | $ | (24) | $ | (12) |
AMER 1 Joint Venture
In March 2023, we invested in the AMER 1 Joint Venture. Upon formation of the joint venture, we sold the assets and liabilities of the Mexico 3 ("MX3") data center, which were included within our Americas region, for total consideration of $75 million. Consideration included $64 million of net cash proceeds, a 20% partnership interest in the AMER 1 Joint Venture with a fair value of $8 million, and $3 million of receivables. We recognized an insignificant loss on the sale of the MX3 data center.
AMER 2 Joint Venture
On April 10, 2024, we invested in a joint venture to develop and operate an xScale data center in the Americas region (the “AMER 2 Joint Venture”). At closing, we sold the assets and liabilities of the Silicon Valley 12 (“SV12”) data center site, which were included within our Americas region, for total consideration of $293 million, which was comprised of $246 million of net cash proceeds, a 20% partnership interest in the AMER 2 Joint Venture with a fair value of $26 million, and $21 million of receivables. We recognized a gain of $18 million on the sale of the SV12x data center in the second quarter of 2024.
The following table summarizes our maximum exposure to loss related to the VIE Joint Ventures as of December 31, 2025 (in millions):
| VIE Joint Ventures | ||||||||
| Equity Investment | $ | 395 | ||||||
| Outstanding Accounts Receivable | 20 | |||||||
| Other Receivables | 23 | |||||||
| Contract Assets | 47 | |||||||
| Loan Commitment (1) | 392 | |||||||
| Future Equity Contribution Commitments (2) | 83 | |||||||
| Maximum Future Payments under Debt Guarantees (3) | 41 | |||||||
| Total | $ | 1,001 |
(1)Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement with the AMER 2 Joint Venture, as a lender, further discussed in Note 15.
(2)The joint ventures' partners are required to make additional equity contributions proportionately upon certain occurrences, such as a shortfall in capital necessary to complete construction or to make interest payments on their outstanding debt.
(3)In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with our guarantees covering 20% of all payments of principal and interest due under one of the EMEA 2 Joint Venture's credit facility agreements. A portion of the guarantees relates to our AMER 1 Joint Venture. Refer to Note 14.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
AMER 3 Joint Venture
On October 30, 2024, we formed a joint venture to develop and operate xScale data center campuses in the Americas region (the "AMER 3 Joint Venture"). As of December 31, 2025, there have been no equity contributions made to the AMER 3 Joint Venture.
6. Balance Sheet Components
Cash, Cash Equivalents and Short-Term Investments
Cash and cash equivalents and short-term investments consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Cash | $ | 368 | $ | 565 | |||||||
| Cash equivalents: | |||||||||||
| Money market funds | 1,333 | 2,401 | |||||||||
| Time deposits | 26 | 115 | |||||||||
| Total cash and cash equivalents | 1,727 | 3,081 | |||||||||
| Short-term investments: | |||||||||||
| Time deposits | 1,245 | 527 | |||||||||
| U.S. government securities | 255 | — | |||||||||
| Total short-term investments | 1,500 | 527 | |||||||||
| Total cash, cash equivalents and short-term investments | $ | 3,227 | $ | 3,608 |
As of December 31, 2025 and 2024, cash and cash equivalents included investments which were readily convertible to cash and generally had original maturities of 3 months or less. The maturities of time deposits and U.S. government securities classified as short-term investments were one year or less as of December 31, 2025.
Accounts Receivable
Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. Accounts receivable, net, consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Accounts receivable | $ | 1,017 | $ | 968 | |||||||
| Allowance for credit losses | (16) | (19) | |||||||||
| Accounts receivable, net | $ | 1,001 | $ | 949 |
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following table summarizes the activity of our allowance for credit losses (in millions):
| Balance as of December 31, 2022 | $ | 12 | |||
| Provision for credit losses | 15 | ||||
| Net write-offs | (9) | ||||
| Impact of foreign currency exchange | (1) | ||||
| Balance as of December 31, 2023 | 17 | ||||
| Provision for credit losses | 21 | ||||
| Net write-offs | (20) | ||||
| Impact of foreign currency exchange | 1 | ||||
| Balance as of December 31, 2024 | 19 | ||||
| Provision for credit losses | 10 | ||||
| Net write-offs | (13) | ||||
| Balance as of December 31, 2025 | $ | 16 |
Other Current Assets
Other current assets consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Taxes receivable | $ | 284 | $ | 223 | |||||||
| Derivative assets, current | 235 | 296 | |||||||||
| Prepaid expenses, current | 134 | 91 | |||||||||
| Other receivables (1) | 82 | 106 | |||||||||
| Contract assets, current | 56 | 102 | |||||||||
| Other (2) | 106 | 72 | |||||||||
| Total other current assets | $ | 897 | $ | 890 |
(1)Includes receivables due from our joint ventures. See Note 15.
(2)The balance as of December 31, 2025 included $60 million of restricted cash, current, primarily comprised of temporary cash collateral.
Property, Plant and Equipment, Net
Property, plant and equipment, net consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Core systems | $ | 15,100 | $ | 12,890 | |||||||
| Buildings | 11,170 | 9,475 | |||||||||
| Construction in progress | 2,827 | 2,204 | |||||||||
| Land | 2,757 | 1,652 | |||||||||
| Internal-use software | 2,472 | 2,149 | |||||||||
| Leasehold improvements | 2,210 | 1,980 | |||||||||
| Personal property | 436 | 373 | |||||||||
| 36,972 | 30,723 | ||||||||||
| Less accumulated depreciation | (13,388) | (11,474) | |||||||||
| Property, plant and equipment, net | $ | 23,584 | $ | 19,249 |
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Goodwill and Other Intangibles
The following table presents goodwill and other intangible assets, net, for the years ended December 31, 2025 and 2024 (in millions):
| 2025 | 2024 | ||||||||||
| Goodwill: | |||||||||||
| Americas | $ | 2,615 | $ | 2,559 | |||||||
| EMEA | 2,629 | 2,349 | |||||||||
| Asia-Pacific | 740 | 596 | |||||||||
| $ | 5,984 | $ | 5,504 | ||||||||
| Intangible assets: | |||||||||||
| Customer relationships | $ | 2,906 | $ | 2,745 | |||||||
| Other | 117 | 116 | |||||||||
| 3,023 | 2,861 | ||||||||||
| Less accumulated amortization | (1,707) | (1,444) | |||||||||
| Total intangible assets, net | $ | 1,316 | $ | 1,417 |
Changes in the carrying amount of goodwill by geographic regions are as follows (in millions):
| Americas | EMEA | Asia-Pacific | Total | ||||||||||||||||||||
| Balance as of December 31, 2022 | $ | 2,631 | $ | 2,378 | $ | 645 | $ | 5,654 | |||||||||||||||
| Impact of foreign currency exchange | — | 89 | (6) | 83 | |||||||||||||||||||
| Balance as of December 31, 2023 | 2,631 | 2,467 | 639 | 5,737 | |||||||||||||||||||
| Impact of foreign currency exchange | (72) | (118) | (43) | (233) | |||||||||||||||||||
| Balance as of December 31, 2024 | 2,559 | 2,349 | 596 | 5,504 | |||||||||||||||||||
| Additions | — | 11 | 127 | 138 | |||||||||||||||||||
| Impact of foreign currency exchange | 56 | 269 | 17 | 342 | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 2,615 | $ | 2,629 | $ | 740 | $ | 5,984 |
Changes in the net book value of intangible assets by geographic regions are as follows (in millions):
| Americas | EMEA | Asia-Pacific | Total | ||||||||||||||||||||
| Balance as of December 31, 2022 | $ | 1,349 | $ | 402 | $ | 147 | $ | 1,898 | |||||||||||||||
| Additions | 7 | — | 1 | 8 | |||||||||||||||||||
| Amortization of intangibles | (140) | (54) | (14) | (208) | |||||||||||||||||||
| Impact of foreign currency exchange | — | 10 | (3) | 7 | |||||||||||||||||||
| Balance as of December 31, 2023 | 1,216 | 358 | 131 | 1,705 | |||||||||||||||||||
| Impairment charges (1) | (29) | — | — | (29) | |||||||||||||||||||
| Amortization of intangibles | (140) | (54) | (14) | (208) | |||||||||||||||||||
| Impact of foreign currency exchange | (25) | (16) | (10) | (51) | |||||||||||||||||||
| Balance as of December 31, 2024 | 1,022 | 288 | 107 | 1,417 | |||||||||||||||||||
| Additions | — | 29 | 21 | 50 | |||||||||||||||||||
| Amortization of intangibles | (130) | (56) | (14) | (200) | |||||||||||||||||||
| Impact of foreign currency exchange | 15 | 30 | 4 | 49 | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 907 | $ | 291 | $ | 118 | $ | 1,316 |
(1)Refer to Note 17.
F-27
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Goodwill and intangible assets which are denominated in currencies other than the U.S. dollar are subject to foreign currency fluctuations. Our foreign currency translation gains and losses are a component of other comprehensive income (loss).
Estimated future amortization expense related to these intangibles is as follows (in millions):
| Years ending: | |||||
| 2026 | $ | 204 | |||
| 2027 | 202 | ||||
| 2028 | 200 | ||||
| 2029 | 179 | ||||
| 2030 | 157 | ||||
| Thereafter | 374 | ||||
| Total | $ | 1,316 |
Other Assets
Other assets consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Prepaid assets, non-current | $ | 726 | $ | 109 | |||||||
| Equity method investments | 551 | 519 | |||||||||
| Contract costs | 503 | 436 | |||||||||
| Loan receivable | 328 | 258 | |||||||||
| Deferred CCA implementation costs | 142 | 115 | |||||||||
| Contract assets, non-current | 126 | 113 | |||||||||
| Prepaid expenses, non-current | 107 | 62 | |||||||||
| Deferred tax assets, net | 100 | 48 | |||||||||
| Deposits | 62 | 60 | |||||||||
| Derivative assets, non-current | 20 | 295 | |||||||||
| Debt issuance costs, net | 2 | 3 | |||||||||
| Other (1) | 73 | 31 | |||||||||
| Total other assets | $ | 2,740 | $ | 2,049 |
(1)The balance as of December 31, 2025 included $37 million restricted cash, non-current, primarily comprised of security deposits.
F-28
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Accrued compensation and benefits | $ | 473 | $ | 421 | |||||||
| Accrued taxes (1) | 235 | 196 | |||||||||
| Accrued interest | 176 | 96 | |||||||||
| Accrued utilities and security | 154 | 164 | |||||||||
| Accounts payable | 127 | 133 | |||||||||
| Other | 185 | 183 | |||||||||
| Total accounts payable and accrued expenses | $ | 1,350 | $ | 1,193 |
(1)Accrued taxes included income taxes payable of $114 million and $109 million as of December 31, 2025 and 2024, respectively.
Other Current Liabilities
Other current liabilities consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Deferred revenue, current | $ | 133 | $ | 123 | |||||||
| Derivative liabilities, current | 116 | 27 | |||||||||
| Dividends payable, current | 18 | 16 | |||||||||
| Customer deposits | 16 | 16 | |||||||||
| Asset retirement obligations, current | 3 | 1 | |||||||||
| Other | 54 | 49 | |||||||||
| Total other current liabilities | $ | 340 | $ | 232 |
Other Liabilities
Other liabilities consisted of the following as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Deferred tax liabilities, net | $ | 367 | $ | 339 | |||||||
| Asset retirement obligations, non-current | 225 | 108 | |||||||||
| Deferred revenue, non-current | 170 | 150 | |||||||||
| Derivative liabilities, non-current | 113 | 46 | |||||||||
| Accrued taxes | 47 | 42 | |||||||||
| Dividends payable, non-current | 14 | 13 | |||||||||
| Other non-current liabilities | 47 | 62 | |||||||||
| Total other liabilities | $ | 983 | $ | 760 |
F-29
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following table summarizes the activities of our asset retirement obligations ("ARO") (in millions):
| Asset retirement obligations as of December 31, 2022 | $ | 118 | |||
| Additions and adjustments | (12) | ||||
| Accretion expense | 7 | ||||
| Asset retirement obligations as of December 31, 2023 | 113 | ||||
| Additions and adjustments | (6) | ||||
| Accretion expense | 6 | ||||
| Impact of foreign currency exchange | (4) | ||||
| Asset retirement obligations as of December 31, 2024 | 109 | ||||
| Additions and adjustments | 108 | ||||
| Accretion expense | 7 | ||||
| Impact of foreign currency exchange | 4 | ||||
| Asset retirement obligations as of December 31, 2025 | $ | 228 |
7. Derivatives and Hedging Instruments
Derivatives and Other Instruments Designated as Hedging Instruments
Net Investment Hedges
Foreign Currency Debt: We are exposed to the impact of foreign exchange rate fluctuations on the value of investments in our foreign subsidiaries whose functional currencies are other than the U.S. dollar. In order to mitigate the impact of foreign currency exchange rates, we have entered into various foreign currency debt obligations, which are designated as hedges against our net investments in foreign subsidiaries. As of December 31, 2025 and 2024, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $923 million and $1.0 billion, respectively.
Foreign Currency Forward Contracts: We use foreign currency forward contracts, designated as net investment hedges, to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude forward points from the assessment of hedge effectiveness and amortize the initial value of the excluded component through interest expense. The difference between fair value changes from the excluded component and the amount amortized is recognized in other comprehensive income (loss).
Embedded Derivatives: Certain of our customer agreements that are priced in currencies different from the functional or local currencies of the parties involved are deemed to have foreign currency forward contracts embedded in them. These embedded derivatives are separated from their host contracts and carried on our balance sheet at their fair value. The majority of these embedded derivatives arise as a result of our foreign subsidiaries pricing their customer contracts in U.S. dollars. We use these forward contracts embedded within our customer agreements to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. As of December 31, 2025 and 2024, the total remaining contract value of such customer agreements outstanding under this hedging program was $230 million and $213 million, respectively.
Cross-currency Interest Rate Swaps: We also use cross-currency interest rate swaps, designated as net investment hedges, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt, to hedge the currency exposure associated with our net investment in our foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).
F-30
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Cash Flow Hedges
Foreign Currency Forward Contracts: We enter into intercompany foreign currency forward contracts ("intercompany derivatives") with our wholly-owned subsidiaries in our EMEA region in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. dollar (primarily the British pound and the euro). Simultaneously, we enter into foreign currency forward contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. We designate the intercompany derivatives as cash flow hedges. We do not exclude any components from the assessment of hedge effectiveness and the change in fair value of these derivatives is recognized in other comprehensive income (loss) until the hedged transaction occurs.
As of December 31, 2025, our foreign currency forward contracts had maturity dates ranging from January 2026 to December 2027 and we had a net loss of $51 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses for cash flow hedges that will mature in the next 12 months. As of December 31, 2024, our foreign currency forward contracts had maturity dates ranging from January 2025 to December 2026 and we had a net gain of $38 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses for cash flow hedges that matured in the 12 months following December 31, 2024.
Cross-currency Interest Rate Swaps: We use cross-currency swaps, designated as cash flow hedges, to manage the foreign currency exposure associated with a portion of our foreign currency-denominated variable-rate debt and our U.S. dollar-denominated fixed-rate debt issued by our foreign subsidiaries. As of December 31, 2025, these cross-currency interest rate swaps had maturity dates ranging from March 2026 to June 2034. We had a net gain of $13 million recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months. As of December 31, 2024, our cross-currency interest rate swaps had maturity dates ranging from March 2026 to June 2034. We had a net gain of $13 million recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the 12 months following December 31, 2024. We use the spot method to assess hedge effectiveness. Fair value changes from spot rates are recognized in other comprehensive income (loss) initially and immediately reclassified to earnings to offset the gain or loss from remeasuring the associated debt. We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).
Interest Rate Locks: We hedge the interest rate exposure created by anticipated fixed-rate debt issuances through the use of treasury locks and swap locks (collectively, interest rate locks), which are designated as cash flow hedges. As of both December 31, 2025 and 2024, we had no interest rate locks outstanding. When interest rate locks are settled, any gain or loss from the transactions is deferred and included as a component of other comprehensive income (loss) and is amortized to interest expense over the term of the forecasted hedged transaction which is equivalent to the term of the interest rate locks. As of December 31, 2025 and 2024, we had a net gain of $4 million and $3 million, respectively, recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the 12 months following December 31, 2025 and 2024, respectively, for interest rate locks.
Derivatives Not Designated as Hedging Instruments
Foreign Currency Forward Contracts: We also use foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. dollar equivalent values of our foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts.
Cross-currency Interest Rate Swaps: We may, from time to time, elect to dedesignate a portion of our cross-currency interest rate swaps previously designated as hedging instruments. Gains and losses subsequent to the dedesignation are recognized in other income (expense).
F-31
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Notional Amounts and Fair Value of Derivative Instruments
The following table presents the composition of derivative instruments recognized in our consolidated balance sheets, excluding accrued interest, as of December 31 (in millions):
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
| Notional Amount (1) | Assets (2) | Liabilities (3) | Notional Amount (1) | Assets (2) | Liabilities (3) | ||||||||||||||||||||||||||||||
| Net investment hedges | |||||||||||||||||||||||||||||||||||
| Foreign currency forward contracts | $ | 1,224 | $ | 14 | $ | 8 | $ | 966 | $ | 39 | $ | 17 | |||||||||||||||||||||||
| Cross-currency interest rate swaps | 373 | 7 | 32 | 1,986 | 189 | 1 | |||||||||||||||||||||||||||||
| Cash flow hedges | |||||||||||||||||||||||||||||||||||
| Foreign currency forward contracts | 1,577 | 1 | 72 | 1,365 | 53 | — | |||||||||||||||||||||||||||||
| Cross-currency interest rate swaps | 2,972 | 65 | 58 | 1,030 | 48 | — | |||||||||||||||||||||||||||||
| Non-designated hedges: | |||||||||||||||||||||||||||||||||||
| Foreign currency forward contracts | 2,134 | 2 | 31 | 3,536 | 80 | 9 | |||||||||||||||||||||||||||||
| Cross-currency interest rate swaps | 2,003 | 166 | 28 | 1,395 | 182 | 45 | |||||||||||||||||||||||||||||
| Total | $ | 10,283 | $ | 255 | $ | 229 | $ | 10,278 | $ | 591 | $ | 72 |
(1)Excludes embedded derivatives.
(2)As presented in our consolidated balance sheets within other current assets and other assets.
(3)As presented in our consolidated balance sheets within other current liabilities and other liabilities.
Impact on Accumulated Other Comprehensive Income (Loss)
The pre-tax gains (losses) from hedging instruments recognized in accumulated other comprehensive income (loss) for the years ended December 31 were as follows (in millions):
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Net investment hedges: | ||||||||||||||||||||
| Foreign currency debt | $ | (129) | $ | 68 | $ | (54) | ||||||||||||||
| Foreign currency forward contracts (included component) | (22) | 66 | (9) | |||||||||||||||||
| Foreign currency forward contracts (excluded component) | 3 | 2 | 3 | |||||||||||||||||
| Cross-currency interest rate swaps (included component) | (190) | 149 | (73) | |||||||||||||||||
| Cross-currency interest rate swaps (excluded component) | 21 | 4 | 1 | |||||||||||||||||
| Total | $ | (317) | $ | 289 | $ | (132) | ||||||||||||||
| Cash flow hedges: | ||||||||||||||||||||
| Foreign currency forward contracts | $ | (125) | $ | 65 | $ | (17) | ||||||||||||||
| Cross-currency interest rate swaps (excluded component) | 38 | (17) | (2) | |||||||||||||||||
| Interest rate locks | (2) | (1) | (5) | |||||||||||||||||
| Total | $ | (89) | $ | 47 | $ | (24) |
F-32
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Impact on Earnings
The gains (losses) from derivative instruments recognized in earnings, and the location of such gains (losses) in the consolidated statements of operations for the years ended December 31 were as follows (in millions):
| Location of gain (loss) | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Net investment hedges: | |||||||||||||||||||||||
| Foreign currency forward contracts (excluded component) | Interest expense | $ | 15 | $ | 10 | $ | 2 | ||||||||||||||||
| Cross-currency interest rate swaps (excluded component) | Interest expense | 11 | 27 | 45 | |||||||||||||||||||
| Total | $ | 26 | $ | 37 | $ | 47 | |||||||||||||||||
| Cash flow hedges: | |||||||||||||||||||||||
| Foreign currency forward contracts | Revenues | $ | (43) | $ | 11 | $ | (9) | ||||||||||||||||
| Foreign currency forward contracts | Costs and operating expenses | 19 | (6) | 15 | |||||||||||||||||||
| Cross-currency interest rate swaps (excluded component) | Interest expense | 13 | 8 | (1) | |||||||||||||||||||
| Cross-currency interest rate swaps (included component) | Other income (expense) | (79) | 29 | 17 | |||||||||||||||||||
| Interest rate locks | Interest expense | 3 | 1 | 1 | |||||||||||||||||||
| Total | $ | (87) | $ | 43 | $ | 23 | |||||||||||||||||
| Non-designated hedges: | |||||||||||||||||||||||
| Foreign currency forward contracts | Other income (expense) | (113) | 154 | (20) | |||||||||||||||||||
| Cross-currency interest rate swaps | Other income (expense) | (30) | 18 | 6 | |||||||||||||||||||
| Total | $ | (143) | $ | 172 | $ | (14) |
Offsetting Derivative Assets and Liabilities
We enter into master netting agreements with our counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation in our consolidated balance sheets, we do not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements, inclusive of accrued interest (in millions):
| Gross Amounts | Gross Amounts Offset in the Balance Sheet | Net Amounts | Gross Amounts Not Offset in the Balance Sheet | Net | |||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| Derivative assets | $ | 267 | $ | — | $ | 267 | $ | (80) | $ | 187 | |||||||||||||||||||
| Derivative liabilities | 241 | — | 241 | (80) | 161 | ||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Derivative assets | $ | 605 | $ | — | $ | 605 | $ | (75) | $ | 530 | |||||||||||||||||||
| Derivative liabilities | 79 | — | 79 | (75) | 4 |
8. Fair Value Measurements
We perform fair value measurements in accordance with ASC 820, Fair Value Measurement, which establishes three levels of inputs that we use to measure fair value:
- Level 1: quoted prices in active markets for identical assets or liabilities.
F-33
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
*•*Level 2: observable inputs (e.g., spot rates and other data from third-party pricing vendors for our derivative instruments, credit rating and current prices of similar debt instruments that are publicly traded for our debt instruments) other than quoted market prices included within Level 1 that are observable, either directly or indirectly, for the assets or liabilities.
- Level 3: unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities, including indicative pricing from third parties for similar instruments and asset-specific yield adjustments for elements such as credit risk.
The fair values of certain financial assets and liabilities as of December 31 were as follows (in millions):
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value | Fair Value Measurement Using | Fair Value | Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
| Money market funds (1) | $ | 1,333 | $ | 1,333 | $ | — | $ | — | $ | 2,401 | $ | 2,401 | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Time deposits (2) | 1,271 | — | 1,271 | — | 642 | 115 | 527 | — | |||||||||||||||||||||||||||||||||||||||
| U.S. government securities (3) | 256 | — | 256 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Loan receivable (4) | 351 | — | — | 351 | 280 | — | — | 280 | |||||||||||||||||||||||||||||||||||||||
| Derivative instruments (5) | 255 | — | 255 | — | 591 | — | 591 | — | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 3,466 | $ | 1,333 | $ | 1,782 | $ | 351 | $ | 3,914 | $ | 2,516 | $ | 1,118 | $ | 280 | |||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivative instruments (5) | $ | 229 | $ | — | $ | 229 | $ | — | $ | 72 | $ | — | $ | 72 | $ | — | |||||||||||||||||||||||||||||||
| Mortgage and loans payable (6) | 706 | — | 706 | — | 654 | — | 654 | — | |||||||||||||||||||||||||||||||||||||||
| Senior notes (6) | 17,297 | 16,847 | 450 | — | 13,342 | 12,851 | 491 | — | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 18,232 | $ | 16,847 | $ | 1,385 | $ | — | $ | 14,068 | $ | 12,851 | $ | 1,217 | $ | — |
(1)Instruments are included within cash and cash equivalents in the consolidated balance sheets, and are measured at fair value.
(2)Instruments are included within cash and cash equivalents and short-term investments in the consolidated balance sheets, and are measured at amortized cost.
(3)Instruments are included within short-term investments in the consolidated balance sheets, and are measured at amortized cost. All of our U.S. government securities are held to maturity and mature within one year. As of December 31, 2025, no allowance for credit losses was recorded for these securities and there are insignificant unrecognized gains and losses.
(4)Instrument is included within other assets in the consolidated balance sheets, and is measured at amortized cost. Refer to Note 15.
(5)Instruments are included within other current assets, other assets, other current liabilities and other liabilities in the consolidated balance sheets, and are measured at fair value. Refer to Note 7.
(6)Include current and non-current portions and are measured at amortized cost. Refer to Note 10.
F-34
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
9. Leases
Significant Lease Transactions
The following table summarizes significant lease transactions during the year ended December 31, 2025 (in millions):
| Net Incremental (2) | ||||||||||||||||||||||||||||||||||||||||||||
| Lease | Quarter | Transaction | Lease Classification | ROU assets | Lease liabilities | |||||||||||||||||||||||||||||||||||||||
| Tokyo 98/99 ("TY98/99") new data center lease | Q4 | New lease with a 7-year term (1) | Finance Lease | $ | 100 | $ | 100 |
(1) The lease has a maximum term of 21 years with termination options on the seventh and fourteenth anniversaries. As of December 31, 2025, we are reasonably certain to exercise the termination option on the seventh anniversary.
(2) The net incremental amounts represent the adjustments to the right-of-use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.
Lease Expenses
The components of lease expenses were as follows (in millions):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Finance lease cost | |||||||||||||||||
| Amortization of right-of-use assets (1) | $ | 189 | $ | 181 | $ | 167 | |||||||||||
| Interest on lease liabilities | 121 | 113 | 113 | ||||||||||||||
| Total finance lease cost | 310 | 294 | 280 | ||||||||||||||
| Operating lease cost | 238 | 229 | 243 | ||||||||||||||
| Variable lease cost | 89 | 79 | 62 | ||||||||||||||
| Total lease cost | $ | 637 | $ | 602 | $ | 585 |
(1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the consolidated statements of operations.
In addition, we recorded impairment charges of $38 million on operating lease right-of-use assets in the Asia-Pacific region during the fourth quarter of 2024 as described in Note 17.
F-35
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Other Information
Other information related to leases is presented in the following tables (in millions):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from finance leases | $ | 116 | $ | 109 | $ | 110 | |||||||||||
| Operating cash flows from operating leases | 233 | 231 | 231 | ||||||||||||||
| Financing cash flows from finance leases | 155 | 140 | 149 | ||||||||||||||
| Right-of-use assets obtained in exchange for lease obligations: (1) | |||||||||||||||||
| Finance leases | $ | 236 | $ | 213 | $ | 209 | |||||||||||
| Operating leases | 89 | 194 | 211 |
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted-average remaining lease term - finance leases (2) | 13 years | 14 years | |||||||||
| Weighted-average remaining lease term - operating leases (2) | 12 years | 12 years | |||||||||
| Weighted-average discount rate - finance leases | 6 | % | 6 | % | |||||||
| Weighted-average discount rate - operating leases | 5 | % | 5 | % | |||||||
| Finance lease right-of-use assets (3) | $ | 2,277 | $ | 2,158 |
(1) Represents all non-cash changes in right-of-use assets.
(2) Includes lease renewal options that are reasonably certain to be exercised.
(3) As of December 31, 2025 and 2024, we recorded accumulated amortization of finance lease right-of-use assets of $1.1 billion and $964 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.
Maturities of Lease Liabilities
The maturities of our lease liabilities as of December 31, 2025 are as follows (in millions):
| Year ended December 31, | Operating Leases | Finance Leases | Total | |||||||||||||||||
| 2026 | 220 | 280 | 500 | |||||||||||||||||
| 2027 | 217 | 292 | 509 | |||||||||||||||||
| 2028 | 184 | 281 | 465 | |||||||||||||||||
| 2029 | 154 | 273 | 427 | |||||||||||||||||
| 2030 | 144 | 258 | 402 | |||||||||||||||||
| Thereafter | 1,077 | 1,962 | 3,039 | |||||||||||||||||
| Total lease payments | 1,996 | 3,346 | 5,342 | |||||||||||||||||
| Less imputed interest | (537) | (991) | (1,528) | |||||||||||||||||
| Total | $ | 1,459 | $ | 2,355 | $ | 3,814 |
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of December 31, 2025. These leases are expected to commence between 2026 and 2029, with lease terms of 2 to 99 years and total lease commitments of approximately $600 million.
F-36
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
10. Debt Facilities
Mortgage and Loans Payable
As of December 31, 2025 and 2024, our mortgage and loans payable balance consisted of the following (in millions):
| 2025 | 2024 | ||||||||||
| Term loans | $ | 673 | $ | 628 | |||||||
| Mortgage payable and other loans payable | 30 | 21 | |||||||||
| 703 | 649 | ||||||||||
| Less current portion | (17) | (5) | |||||||||
| $ | 686 | $ | 644 |
Senior Credit Facility
In 2022, we entered into a credit agreement with a group of lenders for a senior unsecured credit facility, comprised of a $4.0 billion senior unsecured multicurrency revolving credit facility (the "2022 Revolving Facility") and a £500 million senior unsecured term loan facility (the "2022 Term Loan Facility").
As of December 31, 2025, we had 37 irrevocable letters of credit totaling $31 million issued and outstanding under the 2022 Revolving Facility, with approximately $4.0 billion remaining available to borrow under the 2022 Revolving Facility. As of December 31, 2025 and December 31, 2024, unamortized debt issuance costs for the 2022 Revolving Facility of $2 million and $3 million, respectively, were presented in other assets in the consolidated balance sheets.
As of December 31, 2025 and 2024, the total amounts outstanding under the 2022 Term Loan Facility, net of debt issuance costs, were $673 million and $625 million, respectively.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Senior Notes
Our senior notes balance consisted of the following as of December 31 (in millions):
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| Senior Notes | Issuance Date | Maturity Date | Amount | Effective Rate | Amount | Effective Rate | ||||||||||||||||||||||||||||||||
| 1.250% Senior Notes due 2025 | June 2020 | July 2025 | $ | — | — | % | $ | 500 | 1.46 | % | ||||||||||||||||||||||||||||
| 1.000% Senior Notes due 2025 | October 2020 | September 2025 | — | — | % | 700 | 1.18 | % | ||||||||||||||||||||||||||||||
| 1.450% Senior Notes due 2026 | May 2021 | May 2026 | 700 | 1.64 | % | 700 | 1.64 | % | ||||||||||||||||||||||||||||||
| 2.900% Senior Notes due 2026 | November 2019 | November 2026 | 600 | 3.04 | % | 600 | 3.04 | % | ||||||||||||||||||||||||||||||
| 0.250% Euro Senior Notes due 2027 | March 2021 | March 2027 | 587 | 0.45 | % | 518 | 0.45 | % | ||||||||||||||||||||||||||||||
| 1.800% Senior Notes due 2027 | June 2020 | July 2027 | 500 | 1.96 | % | 500 | 1.96 | % | ||||||||||||||||||||||||||||||
| 1.550% Senior Notes due 2028 | October 2020 | March 2028 | 650 | 1.67 | % | 650 | 1.67 | % | ||||||||||||||||||||||||||||||
| 2.000% Senior Notes due 2028 | May 2021 | May 2028 | 400 | 2.21 | % | 400 | 2.21 | % | ||||||||||||||||||||||||||||||
| 2.875% Swiss Franc Senior Notes due 2028 | September 2023 | September 2028 | 378 | 3.05 | % | 331 | 3.05 | % | ||||||||||||||||||||||||||||||
| 3.250% Euro Senior Notes due 2029 | May 2025 | May 2029 | 881 | 3.45 | % | — | — | % | ||||||||||||||||||||||||||||||
| 1.558% Swiss Franc Senior Notes due 2029 | September 2024 | September 2029 | 126 | 1.79 | % | 110 | 1.79 | % | ||||||||||||||||||||||||||||||
| 3.200% Senior Notes due 2029 | November 2019 | November 2029 | 1,200 | 3.30 | % | 1,200 | 3.30 | % | ||||||||||||||||||||||||||||||
| 3.500% Singapore Dollar Senior Notes due 2030 | March 2025 | March 2030 | 389 | 3.67 | % | — | — | % | ||||||||||||||||||||||||||||||
| 2.150% Senior Notes due 2030 | June 2020 | July 2030 | 1,100 | 2.27 | % | 1,100 | 2.27 | % | ||||||||||||||||||||||||||||||
| 4.600% Senior Notes due 2030 | November 2025 | November 2030 | 1,250 | 4.81 | % | — | — | % | ||||||||||||||||||||||||||||||
| 3.250% Euro Senior Notes due 2031 | November 2024 | March 2031 | 763 | 3.46 | % | 673 | 3.46 | % | ||||||||||||||||||||||||||||||
| 2.500% Senior Notes due 2031 | May 2021 | May 2031 | 1,000 | 2.65 | % | 1,000 | 2.65 | % | ||||||||||||||||||||||||||||||
| 3.900% Senior Notes due 2032 | April 2022 | April 2032 | 1,200 | 4.07 | % | 1,200 | 4.07 | % | ||||||||||||||||||||||||||||||
| 2.900% Singapore Dollar Senior Notes due 2032 | August 2025 | September 2032 | 505 | 3.01 | % | — | — | % | ||||||||||||||||||||||||||||||
| 4.000% Canadian Dollar Senior Notes due 2032 | November 2025 | November 2032 | 510 | 4.29 | % | — | — | % | ||||||||||||||||||||||||||||||
| 1.000% Euro Senior Notes due 2033 | March 2021 | March 2033 | 705 | 1.18 | % | 622 | 1.18 | % | ||||||||||||||||||||||||||||||
| 3.650% Euro Senior Notes due 2033 | September 2024 | September 2033 | 705 | 3.78 | % | 622 | 3.78 | % | ||||||||||||||||||||||||||||||
| 4.000% Euro Senior Notes due 2034 | May 2025 | May 2034 | 881 | 4.17 | % | — | — | % | ||||||||||||||||||||||||||||||
| 5.500% Senior Notes due 2034 | May 2024 | June 2034 | 750 | 5.74 | % | 750 | 5.74 | % | ||||||||||||||||||||||||||||||
| 3.625% Euro Senior Notes due 2034 | November 2024 | November 2034 | 587 | 3.75 | % | 518 | 3.75 | % | ||||||||||||||||||||||||||||||
| 2.000% Japanese Yen Series A Notes due 2035 | March 2023 | March 2035 | 240 | 2.07 | % | 239 | 2.07 | % | ||||||||||||||||||||||||||||||
| 2.130% Japanese Yen Series C Notes due 2035 | March 2023 | March 2035 | 94 | 2.20 | % | 94 | 2.20 | % | ||||||||||||||||||||||||||||||
| 2.370% Japanese Yen Series B Notes due 2043 | March 2023 | March 2043 | 65 | 2.42 | % | 65 | 2.42 | % | ||||||||||||||||||||||||||||||
| 2.570% Japanese Yen Series D Notes due 2043 | March 2023 | March 2043 | 29 | 2.62 | % | 29 | 2.62 | % | ||||||||||||||||||||||||||||||
| 2.570% Japanese Yen Series E Notes due 2043 | February 2023 | March 2043 | 64 | 2.62 | % | 64 | 2.62 | % | ||||||||||||||||||||||||||||||
| 3.000% Senior Notes due 2050 | June 2020 | July 2050 | 500 | 3.09 | % | 500 | 3.09 | % | ||||||||||||||||||||||||||||||
| 2.950% Senior Notes due 2051 | October 2020 | September 2051 | 500 | 3.00 | % | 500 | 3.00 | % | ||||||||||||||||||||||||||||||
| 3.400% Senior Notes due 2052 | May 2021 | February 2052 | 500 | 3.50 | % | 500 | 3.50 | % | ||||||||||||||||||||||||||||||
| 18,359 | 14,685 | |||||||||||||||||||||||||||||||||||||
| Less amount representing unamortized debt discounts and debt issuance costs | (150) | (123) | ||||||||||||||||||||||||||||||||||||
| 18,209 | 14,562 | |||||||||||||||||||||||||||||||||||||
| Less current portion | (1,299) | (1,199) | ||||||||||||||||||||||||||||||||||||
| $ | 16,910 | $ | 13,363 |
3.500% Singapore Dollar Senior Notes due 2030
On March 13, 2025, we issued SGD500 million, or approximately $370 million at the exchange rate in effect on that date, aggregate principal amount of 3.500% senior notes due March 15, 2030 (the "2030 SGD Notes"). Interest on the notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2025. Total debt issuance costs related to the 2030 SGD Notes were $3 million.
3.250% Euro Senior Notes due 2029 and 4.000% Euro Senior Notes due 2034
On May 19, 2025, we issued €750 million, or approximately $851 million at the exchange rate in effect on that date, aggregate principal amount of 3.250% senior notes due May 19, 2029 (the "2029 Euro Notes") and €750 million, or approximately $851 million at the exchange rate in effect on that date, aggregate principal amount
F-38
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
of 4.000% senior notes due May 19, 2034 (the "2034 Euro Notes"). Interest on the 2029 Euro Notes and the 2034 Euro Notes is payable annually in arrears on May 19 of each year, commencing on May 19, 2026. Total debt discounts and debt issuance costs related to the 2029 and 2034 Euro Notes were $6 million and $11 million, respectively.
2.900% Singapore Dollar Senior Notes due 2032
On August 21, 2025, we issued SGD650 million, or approximately $500 million at the exchange rate in effect on that date, aggregate principal amount of 2.900% senior notes due September 15, 2032 (the "2032 SGD Notes"). Interest on the notes is payable semi-annually on March 15 and September 15 of each year, commencing on March 15, 2026. Total debt discounts and debt issuance costs related to the 2032 SGD Notes were $3 million.
4.600% Senior Notes due 2030
On November 13, 2025, we issued $1.3 billion aggregate principal amount of 4.600% senior notes due November 15, 2030 (the "2030 Notes"). Interest on the notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2026. Total debt discount and debt issuance costs related to the 2030 Notes were $11 million.
4.000% Canadian Dollar Senior Notes due 2032
On November 24, 2025, we issued CAD700 million, or approximately $499 million at the exchange rate in effect on that date, aggregate principal amount of 4.000% senior notes due November 15, 2032 (the "2032 CAD Notes"). Interest on the notes is payable semi-annually on May 15 and November 15 of each year, commencing on May 15, 2026. Total debt discount and debt issuance costs related to the 2032 CAD Notes were $9 million.
All of our senior notes are unsecured and rank equal in right of payment to our existing or future senior indebtedness and senior in right of payment to our existing and future subordinated indebtedness. Interest on the senior notes is paid semi-annually in arrears, with the exception of our Euro senior notes and Swiss Franc notes which are paid annually in arrears. The senior notes are effectively subordinated to all of the existing and future secured debt, including debt outstanding under any bank facility or secured by any mortgage, to the extent of the assets securing such debt. They are also structurally subordinated to any existing and future indebtedness and other liabilities (including trade payables) of any of our subsidiaries.
Each series of senior notes is governed by an indenture and a supplemental indenture, or a purchase agreement between us and a trustee or a note registrar. These supplemental indentures contain covenants that limit our ability and the ability of our subsidiaries to, among other things:
-
incur liens;
-
enter into sale-leaseback transactions; and
-
merge or consolidate with any other person.
As of December 31, 2025, we are in compliance with all covenants. Subject to compliance with the limitations described above, we may issue an unlimited principal amount of additional notes at later dates under the same indenture as the senior notes.
We are not required to make any mandatory redemption with respect to the senior notes; except upon the event of a change in control, when we may be required to offer to purchase the senior notes.
Optional Redemption
With respect to the notes listed below, we may redeem at our election, at any time or from time to time, some or all of the notes of any series before they mature. The redemption price will equal the sum of (1) an amount equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest up to, but not including, the redemption date and (2) a make-whole premium. If the notes are redeemed on or after the date listed in the table below (the "First Par Call Date"), the redemption price will not include a make-whole premium for the applicable notes.
F-39
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
| Senior Notes Description | First Par Call Date | |||||||||||||
| 1.450% Senior Notes due 2026 | April 15, 2026 | |||||||||||||
| 2.900% Senior Notes due 2026 | September 18, 2026 | |||||||||||||
| 0.250% Euro Senior Notes due 2027 | January 15, 2027 | |||||||||||||
| 1.800% Senior Notes due 2027 | May 15, 2027 | |||||||||||||
| 1.550% Senior Notes due 2028 | January 15, 2028 | |||||||||||||
| 2.000% Senior Notes due 2028 | March 15, 2028 | |||||||||||||
| 2.875% Swiss Franc Senior Notes due 2028 | June 12, 2028 | |||||||||||||
| 3.250% Euro Senior Notes due 2029 | April 19, 2029 | |||||||||||||
| 1.558% Swiss Franc Senior Notes due 2029 | June 4, 2029 | |||||||||||||
| 3.200% Senior Notes due 2029 | August 18, 2029 | |||||||||||||
| 3.500% Singapore Dollar Senior Notes due 2030 | February 15, 2030 | |||||||||||||
| 2.150% Senior Notes due 2030 | April 15, 2030 | |||||||||||||
| 4.600% Senior Notes due 2030 | October 15, 2030 | |||||||||||||
| 3.250% Euro Senior Notes due 2031 | January 15, 2031 | |||||||||||||
| 2.500% Senior Notes due 2031 | February 15, 2031 | |||||||||||||
| 3.900% Senior Notes due 2032 | January 15, 2032 | |||||||||||||
| 2.900% Singapore Dollar Senior Notes due 2032 | July 15, 2032 | |||||||||||||
| 4.000% Canadian Dollar Senior Notes due 2032 | September 15, 2032 | |||||||||||||
| 1.000% Euro Senior Notes due 2033 | December 15, 2032 | |||||||||||||
| 3.650% Euro Senior Notes due 2033 | June 3, 2033 | |||||||||||||
| 4.000% Euro Senior Notes due 2034 | February 19, 2034 | |||||||||||||
| 5.500% Senior Notes due 2034 | March 15, 2034 | |||||||||||||
| 3.625% Euro Senior Notes due 2034 | August 22, 2034 | |||||||||||||
| 2.000% Japanese Yen Series A Notes due 2035 | March 8, 2035 | |||||||||||||
| 2.130% Japanese Yen Series C Notes due 2035 | March 8, 2035 | |||||||||||||
| 2.370% Japanese Yen Series B Notes due 2043 | March 8, 2043 | |||||||||||||
| 2.570% Japanese Yen Series D Notes due 2043 | March 8, 2043 | |||||||||||||
| 2.570% Japanese Yen Series E Notes due 2043 | March 8, 2043 | |||||||||||||
| 3.000% Senior Notes due 2050 | January 15, 2050 | |||||||||||||
| 2.950% Senior Notes due 2051 | March 15, 2051 | |||||||||||||
| 3.400% Senior Notes due 2052 | August 15, 2051 |
Maturities of Debt Instruments
The following table sets forth maturities of our debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs and debt discounts, as of December 31, 2025 (in millions):
| Years ending: | |||||
| 2026 | 1,317 | ||||
| 2027 | 1,764 | ||||
| 2028 | 1,433 | ||||
| 2029 | 2,211 | ||||
| 2030 | 2,739 | ||||
| Thereafter | 9,598 | ||||
| $ | 19,062 |
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Interest Charges
The following table sets forth total interest costs incurred, and total interest costs capitalized for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Interest expense | $ | 527 | $ | 457 | $ | 402 | |||||||||||
| Interest capitalized | 79 | 36 | 26 | ||||||||||||||
| Interest charges incurred | $ | 606 | $ | 493 | $ | 428 |
11. Stockholders' Equity
Our authorized share capital is 300,000,000 shares of common stock and 100,000,000 shares of preferred stock, of which 25,000,000 is designated Series A, 25,000,000 is designated as Series A-1 and 50,000,000 is undesignated. As of December 31, 2025 and 2024, we had no preferred stock issued and outstanding.
Common Stock
In November 2022, we established a program, under which we may, from time to time, offer and sell on a spot or forward basis up to an aggregate of $1.5 billion of our common stock to or through sales agents in "at the market" transactions (the "2022 ATM Program"). The 2022 ATM Program was fully utilized by the end of the third quarter of 2024.
In October 2024, we established a program to succeed the 2022 ATM Program, under which we may, from time to time, offer and sell on a spot or forward basis up to an aggregate of $2.0 billion of our common stock to or through sales agents in "at the market" transactions (the "2024 ATM Program"). The forward sale agreements provide three settlement alternatives to us: physical settlement, cash settlement or net share settlement. In accordance with ASC 815, the forward sale agreements are classified as equity for balance sheet purposes.
Forward sale activity under the 2022 and 2024 ATM Programs is summarized as follows ($ in millions except per share data; shares in thousands):
| Contractual Maturity Dates | Execution Date | Number of Shares (1) | Weighted Average Price per Share (2) | Settlement Value (2) | |||||||||||||||||||||||||
| Outstanding, December 31, 2023 | November 2024 | 643 | $ | 776.23 | $ | 499 | |||||||||||||||||||||||
| Forward Sale Shares Physically Settled | November 2024 to December 2024 | September 2024 | (643) | 790.41 | 509 | ||||||||||||||||||||||||
| Outstanding, December 31, 2024 | — | — | — | ||||||||||||||||||||||||||
| Outstanding, December 31, 2025 | — | $ | — | $ | — |
(1)For agreements settled, the amount represents the actual number of shares issued. For agreements executed and outstanding, the amount represents the number of shares that we would issue upon physical settlement.
(2)For agreements settled, the value represents the actual weighted average settlement value, net of commissions and other offering expenses. For agreements executed and outstanding, the value represents the forward amount that we would receive upon physical settlement as of that date and will be subject to adjustments for a discount rate factor equal to a specified benchmark rate less a spread minus scheduled dividends during the terms of the agreements.
During the year ended December 31, 2025, we sold 107,493 shares on a spot basis under the 2024 ATM Program for approximately $99 million, net of commissions and other offering expenses.
As of December 31, 2025, we had approximately $1.2 billion of common stock available for sale under the 2024 ATM Program.
F-41
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
As of December 31, 2025, we had reserved the following authorized, but unissued shares of common stock for future issuances (in thousands):
| Common stock options and restricted stock units | 5,899 | ||||
| Common stock employee purchase plans | 2,058 | ||||
| Total | 7,957 |
Redeemable Non-controlling Interest
On April 3, 2023, we issued additional shares in our Indonesian operating entity to a third party investor for $25 million, which resulted in the third party investor owning a 25% interest in the entity.
The Indonesian operating entity is a VIE because it does not have sufficient funds from its operations to be self-sustaining. We provide certain management services to the entity and earn fees for the performance of such services. We have the power to direct the activities that most significantly impact the economic performance of the entity and have concluded that we are its primary beneficiary.
Under the terms of the shareholders’ agreement, the investor may put its 25% ownership stake in the entity to us for a maximum exercise price of $25 million, subject to certain contingent conditions. Accordingly, we present the investor’s contingently redeemable non-controlling interest ("NCI") outside of permanent equity at the higher of its maximum redemption amount of $25 million and its balance after attribution of gains and losses in the consolidated balance sheets. There were no changes in the carrying value of the redeemable NCI for the year ended December 31, 2025.
The following table presents the assets and liabilities of the Indonesian VIE, which were included in other assets and other liabilities on the consolidated balance sheets as of December 31 (in millions):
| Balance Sheet | 2025 | 2024 | ||||||||||||
| Cash and cash equivalents | $ | 12 | $ | 16 | ||||||||||
| Property, plant and equipment, net | 65 | 25 | ||||||||||||
| Other | 11 | 5 | ||||||||||||
| Total assets | $ | 88 | $ | 46 | ||||||||||
| Finance lease liabilities | $ | 24 | $ | — | ||||||||||
| Other | 12 | 5 | ||||||||||||
| Total liabilities | $ | 36 | $ | 5 |
The losses from the Indonesian VIE were $8 million for the year ended December 31, 2025 and insignificant for the year ended 2024.
Accumulated Other Comprehensive Loss
The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in millions):
| December 31, 2022 | Net Change | December 31, 2023 | Net Change | December 31, 2024 | Net Change | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Foreign CTA gain (loss) | $ | (1,838) | $ | 250 | $ | (1,588) | $ | (772) | $ | (2,360) | $ | 753 | $ | (1,607) | |||||||||||||||||||||||||||||||||
| Net investment hedge CTA gain (loss) (1) | 416 | (132) | 284 | 295 | 579 | (322) | 257 | ||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on cash flow hedges (1) | 34 | (19) | 15 | 32 | 47 | (55) | (8) | ||||||||||||||||||||||||||||||||||||||||
| Net actuarial loss on defined benefit plans (2) | (1) | — | (1) | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||
| $ | (1,389) | $ | 99 | $ | (1,290) | $ | (445) | $ | (1,735) | $ | 376 | $ | (1,359) |
(1)Refer to Note 7 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.
(2)We have two defined benefit pension plans covering all employees in two countries where such plans are mandated by law. We do not have any defined benefit plans in any other countries.
F-42
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Changes in foreign currencies can have a significant impact to our consolidated balance sheets (as evidenced above in our cumulative foreign currency translation loss), as well as our consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. dollars when the U.S. dollar weakens or less U.S. dollars when the U.S. dollar strengthens. As of December 31, 2025, the U.S. dollar was generally weaker relative to certain of the currencies of the foreign countries in which we operate as compared to December 31, 2024. Because of this, the U.S. dollar had an overall favorable impact on our consolidated financial position because the foreign denominations translated into more U.S. dollars as evidenced by a decrease in foreign currency translation loss for the year ended December 31, 2025 as reflected in the above table. The volatility of the U.S. dollar as compared to the other currencies in which we operate could have a significant impact on our consolidated financial position and results of operations including the amount of revenue that we report in future periods.
Dividends
During the years ended December 31, 2025, 2024 and 2023, our Board of Directors declared quarterly dividends whose treatment for federal income tax purposes were as follows:
| Declaration Date | Record Date | Payment Date | Total Distribution (1) | Nonqualified Ordinary Dividend (2) | Total Distribution Amount | |||||||||||||||||||||||||||||||||||||||
| (per share) | (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| Fiscal 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/12/2025 | 2/26/2025 | 3/19/2025 | $ | 4.69 | $ | 4.69 | $ | 457 | ||||||||||||||||||||||||||||||||||||
| 4/30/2025 | 5/21/2025 | 6/18/2025 | 4.69 | 4.69 | 459 | |||||||||||||||||||||||||||||||||||||||
| 7/30/2025 | 8/20/2025 | 9/17/2025 | 4.69 | 4.69 | 459 | |||||||||||||||||||||||||||||||||||||||
| 10/29/2025 | 11/19/2025 | 12/17/2025 | 4.69 | 4.69 | 460 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 18.76 | $ | 18.76 | $ | 1,835 | ||||||||||||||||||||||||||||||||||||||
| Fiscal 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/14/2024 | 2/28/2024 | 3/20/2024 | $ | 4.26 | $ | 4.26 | $ | 402 | ||||||||||||||||||||||||||||||||||||
| 5/8/2024 | 5/22/2024 | 6/19/2024 | 4.26 | 4.26 | 405 | |||||||||||||||||||||||||||||||||||||||
| 8/7/2024 | 8/21/2024 | 9/18/2024 | 4.26 | 4.26 | 405 | |||||||||||||||||||||||||||||||||||||||
| 10/30/2024 | 11/13/2024 | 12/11/2024 | 4.26 | 4.26 | 412 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 17.04 | $ | 17.04 | $ | 1,624 | ||||||||||||||||||||||||||||||||||||||
| Fiscal 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/15/2023 | 3/7/2023 | 3/22/2023 | $ | 3.41 | $ | 3.41 | $ | 319 | ||||||||||||||||||||||||||||||||||||
| 5/3/2023 | 5/24/2023 | 6/21/2023 | 3.41 | 3.41 | 319 | |||||||||||||||||||||||||||||||||||||||
| 8/2/2023 | 8/23/2023 | 9/20/2023 | 3.41 | 3.41 | 319 | |||||||||||||||||||||||||||||||||||||||
| 10/25/2023 | 11/15/2023 | 12/13/2023 | 4.26 | 4.26 | 402 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 14.49 | $ | 14.49 | $ | 1,359 |
(1)Common stock dividends are characterized for federal income tax purposes as nonqualified ordinary dividend, qualified ordinary dividend, capital gains or return of capital. During the years ended December 31, 2025, 2024 and 2023, we did not classify any portion of the distributions as qualified ordinary dividend, capital gains or return of capital.
(2)All nonqualified ordinary dividends are eligible for the 20% deduction generally allowable to non-corporate shareholders under Internal Revenue Code Section 199A.
In addition, as of December 31, 2025, we recorded a short-term dividend payable of $18 million and a long-term dividend payable of $14 million related to RSUs that have not yet vested. As of December 31, 2024, we recorded a short-term dividend payable of $16 million and a long-term dividend payable of $13 million related to RSUs that had not yet vested.
F-43
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
12. Stock-Based Compensation
Equity Compensation Plans
As of December 31, 2025, our equity compensation plans included:
-
2004 Employee Stock Purchase Plan (the "2004 Purchase Plan")**: The 2004 Purchase Plan permits eligible employees to purchase common stock on favorable terms via payroll deductions of up to 15% of the employee's cash compensation, subject to certain share and statutory dollar limits. Two overlapping offering periods commence during each calendar year, on each of February 15 and August 15 or such other periods or dates as determined by the Talent, Culture and Compensation Committee of the Board of Directors (the "Compensation Committee") from time to time, and the offering periods last up to 24 months with a purchase date every 6 months. The price of each share purchased is 85% of the lower of a) the fair value per share of common stock on the last trading day before the commencement of the applicable offering period or b) the fair value per share of common stock on the purchase date.
-
2020 Equity Incentive Plan*:* In 2020, both our Board of Directors and our stockholders approved the 2020 Equity Incentive Plan, which provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, RSAs, RSUs, other stock-based incentive awards, dividend equivalents, and cash-based incentive awards. The 2020 Equity Incentive Plan's awards may be granted to employees, non-employee members of the Board and consultants. Equity awards granted under the 2020 Equity Incentive Plan generally vest over four years. In 2025, both our Board of Directors and our stockholders approved an amendment to the 2020 Equity Incentive Plan, which increased the maximum number of shares of our common stock available for issuance under the 2020 Equity Incentive Plan by 3.3 million shares.
The Equity compensation plans are administered by the Compensation Committee, which may terminate or amend these plans, with approval of the stockholders as may be required by applicable law, at any time. As of December 31, 2025, shares reserved and available for issuance under the equity compensation plans were as follows (in thousands):
| Shares reserved | Shares available for grant | ||||||||||
| 2004 Purchase Plan | 5,392 | 2,058 | |||||||||
| 2020 Equity Incentive Plan | 5,899 | 4,488 |
Employee Stock Purchase Plan
We provide the following disclosures for the 2004 Purchase Plan as of December 31 (shares in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Weighted-average purchase price per share | $ | 679.57 | $ | 626.35 | $ | 572.59 | |||||||||||
| Weighted-average grant date fair value per award for shares purchased | $ | 220.49 | $ | 204.93 | $ | 206.83 | |||||||||||
| Number of shares purchased | 139 | 148 | 152 |
We use the Black-Scholes option-pricing model to determine the fair value of shares under the 2004 Purchase Plan with the following assumptions during the years ended December 31:
| 2025 | 2024 | 2023 | |||||||||||||||
| Range of dividend yield | 2.07% - 2.14% | 1.98% - 2.10% | 1.69% - 1.78% | ||||||||||||||
| Range of risk-free interest rate | 3.73% - 4.35% | 3.89% - 5.27% | 4.57% - 5.30% | ||||||||||||||
| Range of expected volatility | 20.52% - 32.67% | 21.31% - 29.82% | 26.02% - 34.93% | ||||||||||||||
| Weighted-average expected volatility | 26.59 | % | 26.88 | % | 30.48 | % | |||||||||||
| Weighted-average expected life (in years) | 1.62 | 1.17 | 1.06 |
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Restricted Stock Units
Since 2008, we primarily grant RSUs to our employees, including executives and non-employee directors. We generally grant RSUs that have a service condition only or have both a service and performance condition. Each RSU is not considered issued and outstanding and does not have voting rights until it is converted into one share of our common stock upon vesting. RSU activity is summarized as follows:
| Number of Shares Outstanding (in thousands) | Weighted Average Grant Date Fair Value per Share | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (1) (in millions) | ||||||||||||||||||||
| RSUs outstanding, December 31, 2022 | 1,446 | $ | 641.51 | ||||||||||||||||||||
| RSUs granted | 991 | 699.07 | |||||||||||||||||||||
| RSUs released, vested | (681) | 644.90 | |||||||||||||||||||||
| RSUs canceled | (204) | 640.68 | |||||||||||||||||||||
| RSUs outstanding, December 31, 2023 | 1,552 | 676.89 | |||||||||||||||||||||
| RSUs granted | 842 | 884.10 | |||||||||||||||||||||
| RSUs released, vested | (688) | 714.66 | |||||||||||||||||||||
| RSUs canceled | (274) | 738.15 | |||||||||||||||||||||
| RSUs outstanding, December 31, 2024 | 1,432 | 768.84 | |||||||||||||||||||||
| RSUs granted | 878 | 825.22 | |||||||||||||||||||||
| RSUs released, vested | (691) | 765.22 | |||||||||||||||||||||
| RSUs canceled | (207) | 769.56 | |||||||||||||||||||||
| RSUs outstanding, December 31, 2025 | 1,412 | $ | 805.59 | 1.27 | $ | 1,081 |
(1)The intrinsic value is calculated based on the closing market value of the stock as of December 31, 2025.
The total fair value of RSUs vested and released during the years ended December 31, 2025, 2024 and 2023 was $585 million, $594 million and $498 million, respectively.
Stock-Based Compensation Expense
The following table presents, by operating expense, our stock-based compensation expense recognized in our consolidated statements of operations for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Cost of revenues | $ | 61 | $ | 58 | $ | 48 | |||||||||||
| Sales and marketing | 96 | 94 | 86 | ||||||||||||||
| General and administrative | 341 | 310 | 273 | ||||||||||||||
| Total | $ | 498 | $ | 462 | $ | 407 |
Our stock-based compensation expense recognized in the consolidated statements of operations was comprised of the following types of equity awards for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| RSUs | $ | 471 | $ | 438 | $ | 387 | |||||||||||
| RSAs | — | — | 2 | ||||||||||||||
| Employee stock purchase plan | 27 | 24 | 18 | ||||||||||||||
| Total | $ | 498 | $ | 462 | $ | 407 |
During the years ended December 31, 2025, 2024 and 2023, we capitalized $69 million, $77 million and $60 million, respectively, of stock-based compensation expense as construction in progress in property, plant and equipment.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
As of December 31, 2025, the total stock-based compensation cost related to unvested equity awards not yet recognized, net of estimated forfeitures, totaled $909 million, which is expected to be recognized over a weighted-average period of 2.25 years.
13. Income Taxes
Income before income taxes is attributable to the following geographic locations for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Domestic | $ | 380 | $ | 147 | $ | 278 | |||||||||||
| Foreign | 1,128 | 828 | 846 | ||||||||||||||
| Income before income taxes | $ | 1,508 | $ | 975 | $ | 1,124 |
The tax expenses for income taxes consisted of the following components for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | (6) | $ | 1 | $ | — | |||||||||||
| State and local | (2) | (3) | — | ||||||||||||||
| Foreign | (208) | (189) | (150) | ||||||||||||||
| Subtotal | (216) | (191) | (150) | ||||||||||||||
| Deferred: | |||||||||||||||||
| State and local | (1) | 2 | — | ||||||||||||||
| Foreign | 57 | 28 | (5) | ||||||||||||||
| Subtotal | 56 | 30 | (5) | ||||||||||||||
| Income tax expense | $ | (160) | $ | (161) | $ | (155) |
State and foreign taxes not based on income are included in general and administrative expenses and the aggregate amounts were not significant for the years ended December 31, 2025, 2024 and 2023.
We applied ASU 2023-09 on a prospective basis as discussed in Note 1. Accordingly, the disaggregation of rate reconciliation categories in the table below provide the disclosures required by ASU 2023-09 for the year ended December 31, 2025.
Income tax benefit (expense) for the year ended December 31, 2025 differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pre-tax income as a result of the following ($ in millions, except percentages):
| 2025 | ||||||||||||||
| $ | % | |||||||||||||
| Federal tax at statutory rate | $ | (317) | 21.0 | % | ||||||||||
| State and local taxes (1) | (3) | 0.2 | % | |||||||||||
| Non-deductible or non-taxable items: | ||||||||||||||
| REIT status/dividends paid deduction (2) | 194 | (12.9) | % | |||||||||||
| Other | (2) | 0.1 | % | |||||||||||
| Change in valuation allowance | (4) | 0.3 | % | |||||||||||
| Foreign tax effects: | ||||||||||||||
| Canada | 20 | (1.3) | % | |||||||||||
| Singapore | ||||||||||||||
| Tax rate differential | 17 | (1.1) | % |
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
| Other | (8) | 0.5 | % | |||||||||||
| Other foreign jurisdictions | (53) | 3.5 | % | |||||||||||
| Change in unrecognized tax benefits | (3) | 0.2 | % | |||||||||||
| Other adjustments | (1) | 0.1 | % | |||||||||||
| Total income tax expense | $ | (160) | 10.6 | % |
(1)State taxes in Virginia contributed to the majority of the tax effect in this category.
(2)The REIT status/dividends paid deduction reconciling item reflects that the Company is generally entitled to a deduction for dividends paid and therefore generally is not subject to U.S. federal corporate income tax on taxable income that is distributed; accordingly, certain permanent differences (e.g., nondeductible executive compensation) do not result in incremental federal income tax expense when fully offset through the dividends paid deduction mechanism.
Income tax benefit (expense) for the years ended December 31, 2024 and 2023 differed from the amounts computed by applying the U.S. federal income rate of 21% to pre-tax income as a result of the following (in millions):
| 2024 | 2023 | ||||||||||
| Federal tax at statutory rate | $ | (205) | $ | (236) | |||||||
| State and local tax expense | (1) | — | |||||||||
| Foreign income tax rate differential | (12) | (14) | |||||||||
| Non-deductible expenses | (10) | (6) | |||||||||
| Stock-based compensation expense | (8) | (9) | |||||||||
| Change in valuation allowance | (72) | (32) | |||||||||
| Foreign financing activities | (2) | (4) | |||||||||
| Uncertain tax positions reserve | 11 | 21 | |||||||||
| Tax adjustments related to REIT | 130 | 132 | |||||||||
| Change in deferred tax adjustments | 1 | (3) | |||||||||
| Effect of tax rate change on deferred tax assets | — | (2) | |||||||||
| Other, net | 7 | (2) | |||||||||
| Total income tax expense | $ | (161) | $ | (155) |
Our accounting policy is to treat any tax on net controlled foreign corporation ("CFC") tested income, or "NCTI" (before January 1, 2026, Global Intangible Low-Taxed Income or GILTI) inclusions as a current period cost included in the tax expense in the year incurred. We estimate the NCTI inclusion provision will result in no material financial statement impact provided we satisfy our REIT distribution requirement with respect to the NCTI inclusions.
As a result of our conversion to a REIT effective January 1, 2015, it is no longer our intent to indefinitely reinvest undistributed foreign earnings. However, no deferred tax liability has been recognized to account for this change because the expected recovery of the basis difference will not result in material U.S. taxes in the post-REIT conversion periods due to the fact that the majority of our foreign subsidiaries are either QRSs or owned directly by our REIT and QRSs, and the foreign withholding tax effect would be immaterial. We continue to assess the foreign withholding tax impact of our current policy and do not believe the distribution of our foreign earnings would trigger any significant foreign withholding taxes, as the majority of the foreign jurisdictions where we operate do not impose withholding taxes on dividend distributions to a corporate U.S. parent.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities are set out below as of December 31 (in millions):
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Stock-based compensation expense | $ | 11 | $ | 10 | |||||||
| Net unrealized losses | 26 | 12 | |||||||||
| Operating lease liabilities | 233 | 217 | |||||||||
| Finance lease liabilities | 36 | — | |||||||||
| Deferred revenue | 15 | 11 | |||||||||
| Loss carryforwards and tax credits | 304 | 253 | |||||||||
| Others, net | 62 | 25 | |||||||||
| Gross deferred tax assets | 687 | 528 | |||||||||
| Valuation allowance | (285) | (277) | |||||||||
| Total deferred tax assets, net | 402 | 251 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Finance lease liabilities | — | (13) | |||||||||
| Property, plant and equipment | (305) | (200) | |||||||||
| Right-of-use assets | (235) | (220) | |||||||||
| Deferred income | (6) | (5) | |||||||||
| Goodwill | (40) | (17) | |||||||||
| Intangible assets | (83) | (87) | |||||||||
| Total deferred tax liabilities | (669) | (542) | |||||||||
| Net deferred tax liabilities | $ | (267) | $ | (291) |
The tax basis of REIT assets, excluding investments in TRSs, is greater than the amounts reported for such assets in the accompanying consolidated balance sheets by approximately $3.1 billion as of December 31, 2025.
Our accounting for deferred taxes involves weighing positive and negative evidence concerning the realizability of our deferred tax assets in each taxing jurisdiction. After considering evidence such as the nature, frequency and severity of current and cumulative financial reporting losses, the sources of future taxable income, taxable income in carryback years permitted by the tax laws and tax planning strategies, we concluded that valuation allowances were required in certain jurisdictions. The operations in most of the jurisdictions for which a valuation allowance has been established have a history of significant losses as of December 31, 2025. As such, we do not believe these operations have established a sustained history of profitability and that a valuation allowance is, therefore, necessary. We also provided a valuation allowance against certain gross deferred tax assets in certain taxing jurisdictions as these deferred tax assets are not expected to be realizable in the foreseeable future.
Changes in the valuation allowance for deferred tax assets for the years ended December 31 are as follows (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Beginning balance | $ | 277 | $ | 221 | $ | 167 | |||||||||||
| Amounts from acquisitions | — | — | 10 | ||||||||||||||
| Amounts recognized into income | (26) | 6 | (2) | ||||||||||||||
| Current increase | 26 | 57 | 44 | ||||||||||||||
| Impact of foreign currency exchange | 8 | (7) | 2 | ||||||||||||||
| Ending balance | $ | 285 | $ | 277 | $ | 221 |
F-48
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Our net operating loss carryforwards for federal, state and foreign tax purposes which expire, if not utilized, at various intervals from 2026, are outlined below (in millions):
| Expiration Date | Federal | State | Foreign | Total (1) (2) | ||||||||||||||||||||||
| 2026 | $ | 1 | $ | — | $ | 12 | $ | 13 | ||||||||||||||||||
| 2027 to 2029 | 1 | — | 73 | 74 | ||||||||||||||||||||||
| 2030 to 2032 | — | 1 | 38 | 39 | ||||||||||||||||||||||
| 2033 to 2035 | 1 | — | 69 | 70 | ||||||||||||||||||||||
| 2036 to 2038 | 2 | — | 16 | 18 | ||||||||||||||||||||||
| 2039 to 2041 | — | 21 | 74 | 95 | ||||||||||||||||||||||
| Thereafter | 194 | 92 | 727 | 1,013 | ||||||||||||||||||||||
| $ | 199 | $ | 114 | $ | 1,009 | $ | 1,322 |
(1)In certain jurisdictions, the net operating loss carryforwards can only be used to offset a percentage of taxable income in a given year.
(2)If certain substantial changes in the entity's ownership occur, there may be a limitation on the amount of the carryforwards that can be utilized.
As of December 31, 2025, we had tax credit carryforwards of $7 million, which expire if not utilized, from 2026 to 2031. We also had capital losses of $9 million, which can be carried forward indefinitely.
The beginning and ending balances of our unrecognized tax benefits are reconciled below for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Beginning balance | $ | 57 | $ | 70 | $ | 89 | |||||||||||
| Gross increases related to prior year tax positions | 7 | — | 3 | ||||||||||||||
| Gross decreases related to prior year tax positions | — | (12) | (17) | ||||||||||||||
| Gross increases related to current year tax positions | 5 | 7 | 5 | ||||||||||||||
| Decreases resulting from expiration of statute of limitation | (7) | (7) | (10) | ||||||||||||||
| Decreases resulting from settlements | — | (1) | — | ||||||||||||||
| Ending balance | $ | 62 | $ | 57 | $ | 70 |
We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. We accrued $7 million, $5 million, and $7 million for interest and penalties as of December 31, 2025, 2024 and 2023, respectively.
The unrecognized tax benefits of $62 million as of December 31, 2025, if subsequently recognized, will affect our effective tax rate favorably at the time when such a benefit is recognized.
In general, our income tax returns for the years from 2021 through the current year remain open to examination by federal and state taxing authorities. In addition, our tax years of 2018 through the current year remain open and subject to examination by local tax authorities in certain foreign jurisdictions in which we have major operations.
We applied ASU 2023-09 on a prospective basis as discussed in Note 1. Accordingly, the income taxes paid by jurisdiction (net of refunds received) in the table below provide the disclosures required by ASU 2023-09 for the year ended December 31, 2025 (in millions):
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
| 2025 | |||||
| US federal | $ | (1) | |||
| US states | 2 | ||||
| Foreign | |||||
| Brazil | 26 | ||||
| Singapore | 68 | ||||
| Japan | 23 | ||||
| Australia | 23 | ||||
| Netherlands | 31 | ||||
| Other | 35 | ||||
| Total foreign | 206 | ||||
| Total income taxes paid (net of refunds received) (1) | $ | 207 |
(1)Includes withholding tax expense.
14. Commitments and Contingencies
Purchase Commitments
As a result of our various IBX data center developments, as of December 31, 2025, we were contractually committed for unaccrued capital expenditures, primarily for real estate purchases, IBX infrastructure equipment not yet delivered and labor not yet provided. We also had numerous other, non-capital purchase commitments in place as of December 31, 2025, such as commitments to purchase power in select locations through 2026 and thereafter, and other open purchase orders for goods or services to be delivered or provided during 2026 and thereafter. Certain of our multi-year commitments to purchase power are subject to variable pricing or do not specify a fixed or minimum volume commitment. Due to the indeterminable nature of the spend under these commitments, they are not included in the amounts below.
Total future purchase commitments as of December 31, 2025 are as follows (in millions):
| Years ending: | |||||
| 2026 | 4,912 | ||||
| 2027 | 1,995 | ||||
| 2028 | 575 | ||||
| 2029 | 184 | ||||
| 2030 | 148 | ||||
| Thereafter | 597 | ||||
| $ | 8,411 |
Other Commitments
Please refer to Note 5 for information about our equity method investment commitments and Note 9 for our lease commitments.
Contingent Liabilities
We estimate our exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, we record what we can reasonably estimate based on prior payment history, assessed value by the assessor's office, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. However, there are circumstances beyond our control whereby the underlying value of the property or basis for which the tax is calculated on the property may change, such as a landlord selling the underlying property of one of our IBX data center leases or a municipality changing the assessment value in a jurisdiction and, as a result, our property tax obligations may vary from period to period. Based upon the most current facts and circumstances, we make the necessary property tax accruals for each of our reporting periods. However, revisions
F-50
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
in our estimates of the potential or actual liability could materially impact our financial position, results of operations or cash flows.
Our indirect and property tax filings in various jurisdictions are subject to examination by local tax authorities. Although we believe that we have adequately assessed and accounted for our potential tax liabilities, and that our tax estimates are reasonable, there can be no certainty that additional taxes will not be due upon audit of our tax returns or as a result of further changes to the tax laws and interpretations thereof. For example, we are currently undergoing several indirect tax audits and appealing tentative assessments in Brazil and Loudoun County, Virginia. The final settlement of the audits and the outcomes of the appeals are uncertain and may not be resolved in our favor. We regularly assess the likelihood of adverse outcomes resulting from these examinations and appeals that would affect the adequacy of our tax accruals for each of the reporting periods. If any issues arising from the tax examinations and appeals are resolved in a manner inconsistent with our expectations, the revision of the estimates of the potential or actual liabilities could materially impact our financial position, results of operations, or cash flows.
We are and may continue to be party to certain legal and regulatory proceedings with respect to various matters. We evaluate the likelihood of an unfavorable outcome of all legal and regulatory proceedings to which we are a party. Contingent liabilities are accrued when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. These judgments are subjective based on the status of the legal or regulatory proceedings, the merits of our defenses and consultation with in-house and external legal counsel. Loss contingencies are generally recorded in other current liabilities in the consolidated balance sheets and legal costs are expensed as incurred and are recorded in general and administrative expenses in the consolidated statements of operations.
On March 20, 2024, the Company received a subpoena from the U.S. Attorney’s Office for the Northern District of California ("NDCA"). On April 30, 2024, the Company received a subpoena from the Securities and Exchange Commission ("SEC"). Thereafter, the Company responded to additional information requests by the SEC on the same or related issues. On November 19, 2025, the Company received correspondence from the SEC indicating that the agency had concluded its investigation and does not intend to recommend an enforcement action. The Company also does not expect any further related action from the NDCA.
On May 2, 2024, a putative stockholder class action was filed against the Company and certain of our officers in the United States District Court for the Northern District of California. The named plaintiff alleges violations of Section 10(b) of the Exchange Act and Securities and Exchange Commission Rule 10b-5, and Section 20(a) of the Exchange Act, on the basis that the defendants allegedly made false and misleading statements about our business, results, internal controls, and accounting practices between May 3, 2019 and March 24, 2024. The lawsuit seeks, among other relief, a determination that the alleged claims may be asserted on a class-wide basis, unspecified damages, attorneys' fees, other expenses and costs. We filed a motion to dismiss the lawsuit on October 10, 2024. The motion was granted in part on January 6, 2025. On July 15, 2025, the parties entered a Stipulation of Settlement to resolve the action. The Court granted preliminary approval of the settlement on September 4, 2025. The Court granted preliminary approval of the settlement on September 4, 2025, and final approval of the settlement on December 19, 2025. The case was dismissed with prejudice on December 19, 2025, and the settlement was covered entirely by our insurance.
On February 14, 2025, and February 26, 2025, respectively, certain of the Company’s current and former directors and officers were named as defendants in two shareholder derivative lawsuits (in which the Company is a nominal defendant) filed in the United States District Court for the Northern District of California. The lawsuits alleged, among other things, violations of Section 14(a) of the Exchange Act, breach of fiduciary duty, unjust enrichment, and waste of corporate assets and generally alleged the same purported misconduct as alleged in the putative stockholder class action described above. The lawsuits sought, among other relief, unspecified damages, restitution, attorneys’ fees, and other expenses and costs. On April 17, 2025, and April 18, 2025, respectively, the plaintiffs filed notices of voluntary dismissal without prejudice, subject to court approval, to pursue remedies under Delaware law. The cases were dismissed on April 28, 2025 and August 19, 2025, respectively.
On August 6, 2025, certain of the Company's current and former directors and officers were named as defendants in an additional shareholder derivative lawsuit (in which the Company is a nominal defendant) filed in the United States District Court for the District of Delaware. The lawsuit makes generally the same types of allegations and seeks the same types of relief as the derivative lawsuits above, and makes additional allegations
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
that certain directors' and officers' alleged knowledge of the purported misconduct constituted insider trading. We filed a motion to dismiss the lawsuit on October 20, 2025, which remains pending with the Court.
These matters are subject to uncertainties, and we cannot predict the outcome, nor reasonably estimate a range of loss or penalties, if any, relating to these matters prior to resolution.
In the opinion of management, there are no other pending claims for which the outcome is expected to result in a material adverse effect in the financial position, results of operations or cash flows.
Employment Agreements
We have entered into a severance agreement with certain of our executive officers that provides for a severance payment equal to 100% of the executive officer's annual base salary and target bonus in the event his or her employment is terminated for any reason other than cause or he or she voluntarily resigns under certain circumstances as described in the agreement, or 200% of the executive officer's annual base salary and target bonus in the event this occurs after a change-in-control of our company. For certain other executive officers, these benefits are only triggered after a change-in-control of our company, in which case the officer is entitled to 200% of the executive officer's annual base salary and maximum bonus. In addition, under these agreements, the executive officer is entitled to the payment of his or her monthly health care premiums under the Consolidated Omnibus Budget Reconciliation Act for up to 24 months.
In February 2026, certain executives became participants under a uniform Executive Severance Plan with similar benefits in lieu of individual agreements.
Indemnification and Guarantor Arrangements
As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was serving, at our request in such capacity. The term of the indemnification period is for the officer's or director's lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these indemnification agreements is minimal. We have no liabilities recorded for these agreements as of December 31, 2025.
We enter into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, we may agree to indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally a business partner or a customer, in connection with matters such as any U.S. patent, or any copyright or other intellectual property infringement claim by any third party with respect to our offerings; a breach of confidentiality obligations and certain other contractual warranties; our gross negligence, willful misconduct, fraud, misrepresentation, or violation of law; and/or if we cause tangible property damage, personal injury or death. The term of any such indemnification agreement is generally perpetual after execution of the agreement. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have never incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. In addition, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of December 31, 2025.
We enter into arrangements with certain business partners, whereby the business partner agrees to provide services as a subcontractor for our installations. Accordingly, we enter into standard indemnification agreements with our customers, whereby we indemnify them for certain acts, such as personal property damage, by our subcontractors. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have never incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. In addition, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of December 31, 2025.
F-52
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
We have service level commitment obligations to certain of our customers. As a result, service interruptions or significant equipment damage in our IBX data centers, whether or not within our control, could result in obligations to these customers. While we have purchased insurance that could limit our exposure, our liability insurance may not be adequate to cover those expenses. In addition, any loss of service, equipment damage or inability to meet our service level commitment obligations could reduce the confidence our customers have in us, and could consequently impair our ability to obtain and retain customers, which would adversely affect both our ability to generate revenues and our operating results. We generally have the ability to determine such service level credits prior to the associated revenue being recognized. We do not have significant liabilities in connection with service level credits as of December 31, 2025.
Concurrent with the closing of the EMEA 2 Joint Venture, the EMEA 2 Joint Venture entered into a credit facility agreement with a group of lenders under which it could borrow up to approximately $1.1 billion in total at the exchange rate in effect on December 31, 2025, with such facility maturing in 2026. In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with a guarantee covering 20% of all payments of principal and interest due and payable by the EMEA 2 Joint Venture under the credit facility, up to a limit of $235 million in total at the exchange rate in effect on December 31, 2025. As of December 31, 2025, the maximum potential amount of our future payments under this guarantee was approximately $41 million at the exchange rates in effect on that date. We and our co-investor entered into an ancillary agreement to allocate funding under the credit facility agreement for use by our AMER 1 Joint Venture. As of December 31, 2025, $11 million of the guarantee related to the AMER 1 Joint Venture. Our estimated fair value of this guarantee is minimal as the likelihood of making a payout under the guarantee is remote.
15. Related Party Transactions
Joint Venture Related Party Transactions
Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement (the "AMER 2 Loan") with the AMER 2 Joint Venture, as a lender, with a maximum commitment of $392 million and a maturity date of April 10, 2028. We received an upfront fee of $4 million in connection with the origination of the loan, and earn interest at a contractual rate of 10% per annum on the drawn portion plus an unused commitment fee of 0.75% per annum on the undrawn portion, each payable quarterly. The term of the loan may be extended at the option of the borrower for one additional year subject to an extension fee. The AMER 2 Loan is secured by the assets of the AMER 2 Joint Venture, including the SV12x data center site. The equity partners of the AMER 2 Joint Venture have provided limited guarantees in connection with the AMER 2 Loan, which require payments to the lender proportionately upon certain occurrences, such as a shortfall in capital necessary to complete construction or to make interest payments. Additionally, the equity partners may be liable for repayment of up to the entire debt balance upon the occurrence of certain adverse acts such as a non-permitted transfer of the SV12x data center site. The AMER 2 Loan was negotiated at arm's length. We have assessed the credit risk associated with the AMER 2 Loan to be low and the allowance for credit loss as of December 31, 2025 is insignificant. The maximum amount of credit loss we are exposed to is the outstanding principal, plus accrued interest and unused commitment fees. As of December 31, 2025, the total amount outstanding under the AMER 2 Loan, net of the unamortized upfront fee, was $328 million. Additional amounts may be drawn down by the borrower periodically as needed for the continuation of development and other working capital needs.
We have lease arrangements and provide various services to the EMEA 1 Joint Venture and the VIE Joint Ventures (collectively, the "Joint Ventures") through multiple agreements, including sales and marketing, development management, facilities management, asset management and procurement service agreements. These transactions are generally considered to have been negotiated at arm's length.
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EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following table presents the income and expenses from these arrangements with the Joint Ventures in our consolidated statements of operations (in millions):
| Years Ended December 31, | ||||||||||||||||||||||||||
| Related Party | Nature of Transaction | 2025 | 2024 | 2023 | ||||||||||||||||||||||
| EMEA 1 Joint Venture | Income (1) | $ | 31 | $ | 27 | $ | 29 | |||||||||||||||||||
| EMEA 1 Joint Venture | Expenses (2) | 17 | 16 | 18 | ||||||||||||||||||||||
| VIE Joint Ventures | Income (3) | 151 | 257 | 107 | ||||||||||||||||||||||
| VIE Joint Ventures | Expenses (4) | 13 | 4 | — |
(1)Primarily consists of revenues related to service arrangements as described above.
(2)Primarily consists of rent expenses for a sub-lease agreement with the EMEA 1 Joint Venture for a London data center with a remaining lease term of approximately 14-years as of December 31, 2025.
(3)Primarily consists of revenues related to service arrangements as described above and also includes interest income earned on the AMER 2 Loan for the year ended December 31, 2025 and 2024 of $32 million and $17 million.
(4)Primarily consists of rent expenses for lease arrangements with the VIE Joint Ventures.
We have also sold certain data center facilities to our Joint Ventures and recognized gains or losses on asset sales as described in Note 5.
The following table presents the assets and liabilities from related party transactions with the Joint Ventures in our consolidated balance sheets (in millions):
| EMEA 1 Joint Venture | VIE Joint Ventures | ||||||||||||||||||||||
| As of December 31, | As of December 31, | ||||||||||||||||||||||
| Balance Sheet | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Accounts receivable, net | $ | 10 | $ | 4 | $ | 20 | $ | 50 | |||||||||||||||
| Other current assets (1) | 3 | 19 | 55 | 128 | |||||||||||||||||||
| Property, plant and equipment, net (2) | 144 | 145 | 162 | 74 | |||||||||||||||||||
| Operating lease right-of-use assets | 2 | 2 | 30 | 2 | |||||||||||||||||||
| Other assets (3) | 7 | — | 344 | 302 | |||||||||||||||||||
| Other current liabilities | 10 | 5 | 7 | 10 | |||||||||||||||||||
| Finance lease liabilities | 118 | 164 | 169 | 78 | |||||||||||||||||||
| Operating lease liabilities | 2 | 2 | 27 | 2 | |||||||||||||||||||
| Other liabilities (4) | 13 | 48 | 11 | 11 |
(1)The balance primarily relates to contract assets and other receivables.
(2)The balance relates to finance lease right-of-use assets. As of December 31, 2025, the weighted-average lease terms for the finance leases with the EMEA 1 Joint Venture and the VIE Joint Ventures were 14 years and 8 years, respectively.
(3)The balance primarily relates to contract assets and the AMER 2 Loan receivable.
(4)The balance as of December 31, 2024 primarily relates to the obligation to pay for future construction for certain sites sold as a part of the EMEA 1 Joint Venture transaction. This obligation was settled in the third quarter of 2025 through a non-cash transfer of construction assets to the EMEA 1 Joint Venture. The asset transfer also resulted in a partial settlement of the finance lease liabilities balance with the EMEA 1 Joint Venture.
Other Related Party Transactions
We have several significant stockholders and other related parties that are also customers and/or vendors. Our other related party transaction activity was as follows (in millions):
| Years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues | $ | 116 | $ | 218 | $ | 310 | |||||||||||
| Costs and services | 9 | 18 | 38 |
F-54
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Accounts receivable, net | $ | 12 | $ | 15 | |||||||
| Accounts payable | — | 4 |
16. Restructuring and Other Exit Activities
Q4 2024 Restructuring Plan
In the fourth quarter of 2024, we initiated a restructuring plan to realign the organization and enable further investment in key priority areas (the "Q4 2024 Restructuring Plan"). We incurred total restructuring and other exit charges of $6 million and $27 million, respectively, under this plan, primarily related to severance and other employee costs, during the years ended December 31, 2025 and 2024. The activities under the Q4 2024 Restructuring Plan were completed by March 31, 2025 with no further costs expected to be incurred.
Equinix Metal Wind Down
In the fourth quarter of 2024, we announced the decision to make Equinix Metal no longer commercially available as a product and to wind down operations that support this product by June 2026 (the "Equinix Metal Wind Down"). We incurred total restructuring and other exit charges of $6 million and $4 million, respectively, during the year ended December 31, 2025 and 2024. We expect incremental costs incurred under the Equinix Metal Wind Down to be insignificant and we expect all activities under this initiative to be completed by the end of the fourth quarter of 2026. The actual amounts and timing of incremental costs and cash payments may differ from these estimates should we make further decisions which impact the execution of these activities.
The following table summarizes the activity in accrued restructuring and other exit charges, included in other current liabilities in our consolidated balance sheets, for the years ended December 31, 2025 and 2024 (in millions):
| Q4 2024 Restructuring Plan | Equinix Metal Wind Down | Other | Total | |||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Charges (1) | 24 | 4 | — | 28 | ||||||||||||||||||||||
| Cash payments | (11) | (2) | — | (13) | ||||||||||||||||||||||
| Balance as of December 31, 2024 | 13 | 2 | — | 15 | ||||||||||||||||||||||
| Charges | 6 | 6 | 21 | 33 | ||||||||||||||||||||||
| Cash payments | (19) | (8) | (12) | (39) | ||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | — | $ | — | $ | 9 | $ | 9 |
**(1)**Excludes insignificant stock-based compensation expense which represents non-cash transactions.
No restructuring and other exit charges were incurred during the year ended December 31, 2023.
17. Impairment Charges
Equinix Metal Wind Down
During the fourth quarter of 2024, we identified an indicator that certain assets supporting the sale of our Equinix Metal products may be impaired due to the Equinix Metal Wind Down as described in Note 16. We evaluated the fair value of the asset group, which consisted primarily of hardware, internal-use software, and customer relationships, by determining the fair value in exchange for each class of assets and determined that the carrying amount exceeded the fair value. The significant inputs and assumptions used in the estimate of fair value include broker estimates and liquidation value assumptions. These measurements were classified within Level 3 of the fair value hierarchy as they are not observable. We recorded impairment charges of $131 million and $29 million on property, plant and equipment and intangible assets, respectively, during the fourth quarter of 2024. These impairment charges were recorded in each of our three regions with $127 million in the Americas, $19 million in EMEA and $14 million in Asia-Pacific.
F-55
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Hong Kong IBX
During the fourth quarter of 2024, we identified an indicator that an IBX asset group in the Asia-Pacific region may be impaired due to current and projected future losses at the site. We evaluated the fair value of the asset group, which consisted primarily of operating lease right-of-use assets, leasehold improvements, and personal property, and determined that the carrying amount exceeded the fair value. The fair value of the right-of-use assets were determined using the income approach. The significant inputs and assumptions used in the estimates of fair value include market rent and sublease rental adjustments. The fair values of the leasehold improvements and personal property were determined based on their fair values in exchange. The significant inputs and assumptions used in the estimate of fair value include broker estimates and liquidation value assumptions. These measurements were classified within Level 3 of the fair value hierarchy as they are not observable. We recorded impairment charges of $38 million and $35 million on operating lease right-of-use assets and property, plant and equipment, respectively, in the Asia-Pacific region during the fourth quarter of 2024.
18. Segment Information
While we have one primary line of business, which is the design, build-out and operation of IBX data centers, we have determined that we have three reportable segments comprised of our Americas, EMEA and Asia-Pacific geographic regions. Each of our three reportable segments are managed by regional presidents and require unique strategies due to the varying microeconomic and macroeconomic conditions within each region. Our chief executive officer is our chief operating decision maker and evaluates performance, makes operating decisions and allocates resources primarily based on our revenues and adjusted EBITDA, both on a consolidated basis and for these three reportable segments. Intercompany transactions between segments are excluded for management reporting purposes. Revenues are attributed to countries based on the geographic location of the entity that enters into the contract.
We define adjusted EBITDA, our measure of segment profit or loss, 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 and other exit charges, impairment charges, transaction costs and gain or loss on asset sales. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies, except that segment expenses exclude depreciation, amortization and accretion expense and stock-based compensation expense, consistent with the definition of adjusted EBITDA.
The following tables present segment information, including revenue information disaggregated by product lines and segment adjusted EBITDA, and a reconciliation to total consolidated income before income taxes (in millions):
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Americas | EMEA | Asia-Pacific | Total | ||||||||||||||||||||
| Colocation (1) | $ | 2,683 | $ | 2,346 | $ | 1,446 | $ | 6,475 | |||||||||||||||
| Interconnection | 944 | 385 | 326 | 1,655 | |||||||||||||||||||
| Managed infrastructure | 245 | 152 | 69 | 466 | |||||||||||||||||||
| Other (1) | 17 | 110 | 16 | 143 | |||||||||||||||||||
| Recurring revenues | 3,889 | 2,993 | 1,857 | 8,739 | |||||||||||||||||||
| Non-recurring revenues | 222 | 137 | 119 | 478 | |||||||||||||||||||
| Total revenues (2) | 4,111 | 3,130 | 1,976 | 9,217 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Segment cost of revenues | 1,179 | 1,155 | 625 | 2,959 | |||||||||||||||||||
| Other segment items (3) | 1,042 | 414 | 272 | 1,728 | |||||||||||||||||||
| Segment adjusted EBITDA | $ | 1,890 | $ | 1,561 | $ | 1,079 | $ | 4,530 | |||||||||||||||
| Reconciliation to income before income taxes: | |||||||||||||||||||||||
| Depreciation, amortization and accretion expense | $ | (2,066) | |||||||||||||||||||||
| Stock-based compensation expense | (498) |
F-56
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
| Transaction costs | (18) | ||||||||||||||||||||||
| Restructuring and other exit charges | (33) | ||||||||||||||||||||||
| Impairment charges | (68) | ||||||||||||||||||||||
| Gain (loss) on asset sales | 1 | ||||||||||||||||||||||
| Interest income | 193 | ||||||||||||||||||||||
| Interest expense | (527) | ||||||||||||||||||||||
| Other income (expense) | (7) | ||||||||||||||||||||||
| Gain (loss) on debt extinguishment | 1 | ||||||||||||||||||||||
| Income before income taxes | $ | 1,508 |
(1) Includes some leasing and hedging activities.
(2) Total revenues attributed to the U.S. were $3.6 billion. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2025.
(3) Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Americas | EMEA | Asia-Pacific | Total | ||||||||||||||||||||
| Colocation (1) | $ | 2,474 | $ | 2,235 | $ | 1,349 | $ | 6,058 | |||||||||||||||
| Interconnection | 885 | 340 | 294 | 1,519 | |||||||||||||||||||
| Managed infrastructure | 261 | 138 | 68 | 467 | |||||||||||||||||||
| Other (1) | 27 | 99 | 14 | 140 | |||||||||||||||||||
| Recurring revenues | 3,647 | 2,812 | 1,725 | 8,184 | |||||||||||||||||||
| Non-recurring revenues | 215 | 155 | 194 | 564 | |||||||||||||||||||
| Total revenues (2) | 3,862 | 2,967 | 1,919 | 8,748 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Segment cost of revenues | 1,158 | 1,190 | 635 | 2,983 | |||||||||||||||||||
| Other segment items (3) | 995 | 399 | 274 | 1,668 | |||||||||||||||||||
| Segment adjusted EBITDA | $ | 1,709 | $ | 1,378 | $ | 1,010 | $ | 4,097 | |||||||||||||||
| Reconciliation to income before income taxes: | |||||||||||||||||||||||
| Depreciation, amortization and accretion expense | $ | (2,011) | |||||||||||||||||||||
| Stock-based compensation expense | (462) | ||||||||||||||||||||||
| Transaction costs | (50) | ||||||||||||||||||||||
| Restructuring and other exit charges | (31) | ||||||||||||||||||||||
| Impairment charges | (233) | ||||||||||||||||||||||
| Gain (loss) on asset sales | 18 | ||||||||||||||||||||||
| Interest income | 137 | ||||||||||||||||||||||
| Interest expense | (457) | ||||||||||||||||||||||
| Other income (expense) | (17) | ||||||||||||||||||||||
| Gain (loss) on debt extinguishment | (16) | ||||||||||||||||||||||
| Income before income taxes | $ | 975 |
F-57
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(1) Includes some leasing and hedging activities.
(2) Total revenues attributed to the U.S. were $3.3 billion. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2024.
(3) Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Americas | EMEA | Asia-Pacific | Total | ||||||||||||||||||||
| Colocation (1) | $ | 2,364 | $ | 2,112 | $ | 1,289 | $ | 5,765 | |||||||||||||||
| Interconnection | 821 | 308 | 266 | 1,395 | |||||||||||||||||||
| Managed infrastructure | 250 | 130 | 72 | 452 | |||||||||||||||||||
| Other (1) | 22 | 98 | 13 | 133 | |||||||||||||||||||
| Recurring revenues | 3,457 | 2,648 | 1,640 | 7,745 | |||||||||||||||||||
| Non-recurring revenues | 160 | 190 | 93 | 443 | |||||||||||||||||||
| Total revenues (2) | 3,617 | 2,838 | 1,733 | 8,188 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Segment cost of revenues | 1,047 | 1,199 | 624 | 2,870 | |||||||||||||||||||
| Other segment items (3) | 956 | 388 | 272 | 1,616 | |||||||||||||||||||
| Segment adjusted EBITDA | $ | 1,614 | $ | 1,251 | $ | 837 | $ | 3,702 | |||||||||||||||
| Reconciliation to income before income taxes: | |||||||||||||||||||||||
| Depreciation, amortization and accretion expense | $ | (1,844) | |||||||||||||||||||||
| Stock-based compensation expense | (407) | ||||||||||||||||||||||
| Transaction costs | (13) | ||||||||||||||||||||||
| Gain (loss) on asset sales | 5 | ||||||||||||||||||||||
| Interest income | 94 | ||||||||||||||||||||||
| Interest expense | (402) | ||||||||||||||||||||||
| Other income (expense) | (11) | ||||||||||||||||||||||
| Income before income taxes | $ | 1,124 |
(1) Includes some leasing and hedging activities.
(2) Total revenues attributed to the U.S. and the United Kingdom were $3.1 billion and $822 million, respectively. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2023.
(3) Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.
F-58
EQUINIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
We provide the following additional segment disclosures for the years ended December 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
| Americas | $ | 1,137 | $ | 1,119 | $ | 1,001 | |||||||||||
| EMEA | 538 | 530 | 501 | ||||||||||||||
| Asia-Pacific | 375 | 360 | 343 | ||||||||||||||
| Total | $ | 2,050 | $ | 2,009 | $ | 1,845 | |||||||||||
| Capital expenditures: | |||||||||||||||||
| Americas | $ | 2,743 | $ | 1,838 | $ | 1,627 | |||||||||||
| EMEA | 1,027 | 808 | 717 | ||||||||||||||
| Asia-Pacific | 541 | 420 | 437 | ||||||||||||||
| Total | $ | 4,311 | $ | 3,066 | $ | 2,781 |
Our long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, were located in the following geographic regions as of December 31 (in millions):
| Property, plant and equipment, net | Operating lease right-of-use assets | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Americas (1) | $ | 10,840 | $ | 9,193 | $ | 340 | $ | 389 | |||||||||||||||
| EMEA | 8,314 | 6,405 | 449 | 398 | |||||||||||||||||||
| Asia-Pacific | 4,430 | 3,651 | 603 | 632 | |||||||||||||||||||
| Total | $ | 23,584 | $ | 19,249 | $ | 1,392 | $ | 1,419 |
(1)Property, plant and equipment, net of $8.5 billion and $7.2 billion and operating lease right-of-use assets of $322 million and $368 million were located in the U.S. as of December 31, 2025 and 2024, respectively.
19. Subsequent Events
Declaration of dividends
On February 11, 2026, we declared a quarterly cash dividend of $5.16 per share, which is payable on March 18, 2026 to our common stockholders of record as of the close of business on February 25, 2026.
AMER 3 Joint Venture
On January 13, 2026, we sold the assets and liabilities of the Hampton data center campus ("Hampton") located in the greater Atlanta metro area to the AMER 3 Joint Venture for an estimated purchase price of $470 million, subject to adjustments. In connection with the sale, we contributed $146 million in cash to various entities within the AMER 3 Joint Venture structure consistent with our total 25% economic interest in the joint venture.
F-59
EQUINIX, INC.
Schedule III - Schedule of Real Estate and Accumulated Depreciation
As of December 31, 2025
(in millions)
| Initial Costs to Company (1) | Costs Capitalized Subsequent to Acquisition or Lease (2) | Total Costs | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Encumbrances | Land | Buildings and Improvements (3) | Land | Buildings and Improvements (3) | Land | Buildings and Improvements (3) | Accumulated Depreciation (4) | Date of Acquisition or Lease (5) | |||||||||||||||||||||||||||||||||||||||||||||
| Americas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brazil | $— | $21 | $156 | $12 | $601 | $33 | $757 | $(279) | 2011 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Canada | 18 | 32 | 583 | 138 | 714 | 170 | 1,297 | (369) | 2010 - 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Chile | — | 5 | 52 | — | 93 | 5 | 145 | (24) | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Colombia | — | 4 | 9 | 2 | 87 | 6 | 96 | (17) | 2017 - 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Mexico | — | 7 | 146 | — | 195 | 7 | 341 | (55) | 2020 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Peru | — | 5 | 9 | — | 9 | 5 | 18 | (3) | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| United States Metros: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | — | 5 | 20 | — | 334 | 5 | 354 | (145) | 2010 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Boston | — | 3 | 30 | — | 46 | 3 | 76 | (28) | 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Chicago | — | 14 | 203 | — | 838 | 14 | 1,041 | (387) | 1999 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Culpeper | — | 4 | 151 | 1 | 86 | 5 | 237 | (110) | 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Dallas | — | 25 | 374 | 72 | 1,123 | 97 | 1,497 | (455) | 2000 - 2018 | ||||||||||||||||||||||||||||||||||||||||||||
| Denver | — | 5 | 23 | — | 56 | 5 | 79 | (38) | 2010 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Houston | — | 1 | 24 | — | 42 | 1 | 66 | (27) | 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Los Angeles | — | 27 | 207 | 4 | 254 | 31 | 461 | (286) | 1999 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Miami | — | 24 | 150 | — | 348 | 24 | 498 | (202) | 2010 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| New York | — | 2 | 116 | 65 | 2,097 | 67 | 2,213 | (944) | 1999 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Philadelphia | — | — | — | — | 49 | — | 49 | (30) | 2010 | ||||||||||||||||||||||||||||||||||||||||||||
| Seattle | — | 4 | 15 | — | 248 | 4 | 263 | (145) | 2010 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Silicon Valley | — | 35 | 267 | 15 | 1,155 | 50 | 1,422 | (690) | 1999 - 2019 | ||||||||||||||||||||||||||||||||||||||||||||
| Washington, D.C. | — | 18 | 510 | 7 | 1,747 | 25 | 2,257 | (776) | 1999 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Others (6) | — | 188 | 70 | 248 | 759 | 436 | 829 | (53) | Various | ||||||||||||||||||||||||||||||||||||||||||||
| EMEA: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bulgaria | — | 3 | 5 | — | 39 | 3 | 44 | (13) | 2016 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Côte d'Ivoire | — | — | 1 | — | 6 | — | 7 | (2) | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Finland | — | 7 | 61 | 9 | 175 | 16 | 236 | (113) | 2016 - 2018 | ||||||||||||||||||||||||||||||||||||||||||||
| France | — | 3 | 61 | 25 | 1,104 | 28 | 1,165 | (465) | 2007 - 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Germany | — | 45 | 151 | 52 | 2,156 | 97 | 2,307 | (696) | 2000 - 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Ghana | — | — | 1 | — | 7 | — | 8 | (3) | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Ireland | — | 3 | 110 | 13 | 136 | 16 | 246 | (92) | 2016 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Italy | — | 6 | 23 | 5 | 242 | 11 | 265 | (77) | 2016 - 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Nigeria | — | 1 | 15 | — | 61 | 1 | 76 | (10) | 2022 |
F-60
| Initial Costs to Company (1) | Costs Capitalized Subsequent to Acquisition or Lease (2) | Total Costs | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Encumbrances | Land | Buildings and Improvements (3) | Land | Buildings and Improvements (3) | Land | Buildings and Improvements (3) | Accumulated Depreciation (4) | Date of Acquisition or Lease (5) | |||||||||||||||||||||||||||||||||||||||||||||
| Poland | — | 2 | 11 | 1 | 124 | 3 | 135 | (50) | 2016 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| Portugal | — | 2 | 64 | 3 | 45 | 5 | 109 | (14) | 2017 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| South Africa | — | — | — | — | 11 | — | 11 | (2) | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Spain | — | 8 | 110 | 23 | 235 | 31 | 345 | (127) | 2017 - 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Sweden | — | — | 95 | 4 | 228 | 4 | 323 | (114) | 2016 | ||||||||||||||||||||||||||||||||||||||||||||
| Switzerland | — | — | 11 | 9 | 511 | 9 | 522 | (199) | 2002 - 2009 | ||||||||||||||||||||||||||||||||||||||||||||
| The Netherlands | — | 7 | 183 | 4 | 971 | 11 | 1,154 | (536) | 2008 - 2019 | ||||||||||||||||||||||||||||||||||||||||||||
| Turkey | — | 4 | 99 | — | 54 | 4 | 153 | (24) | 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| United Arab Emirates | — | 7 | — | — | 309 | 7 | 309 | (126) | 2008 - 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| United Kingdom Metros | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| London | — | — | 368 | 63 | 1,660 | 63 | 2,028 | (734) | 2000 - 2018 | ||||||||||||||||||||||||||||||||||||||||||||
| Manchester | — | 4 | 59 | — | 213 | 4 | 272 | (91) | 2016 - 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Others (6) | — | 55 | 15 | 1,065 | 638 | 1,120 | 653 | (65) | Various | ||||||||||||||||||||||||||||||||||||||||||||
| Asia-Pacific: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australia | — | 110 | 248 | 89 | 1,178 | 199 | 1,426 | (539) | 2003 - 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| China | — | — | 105 | — | 864 | — | 969 | (556) | 2003 - 2017 | ||||||||||||||||||||||||||||||||||||||||||||
| India | — | 35 | 163 | 15 | 78 | 50 | 241 | (32) | 2021 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Indonesia | — | — | 58 | — | 10 | — | 68 | (3) | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Japan | — | — | 508 | — | 1,065 | — | 1,573 | (568) | 2000 - 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Malaysia | — | 3 | 68 | — | 77 | 3 | 145 | (12) | 2023 - 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Philippines | — | 7 | — | — | 35 | 7 | 35 | (2) | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Singapore | — | — | 90 | — | 1,579 | — | 1,669 | (766) | 2003 - 2019 | ||||||||||||||||||||||||||||||||||||||||||||
| South Korea | — | — | 51 | — | 36 | — | 87 | (41) | 2019 - 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Others (6) | — | — | 2 | 72 | 421 | 72 | 423 | (35) | Various | ||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LOCATIONS | $18 | $741 | $5,851 | $2,016 | $25,149 | $2,757 | $31,000 | $(11,170) |
(1) The initial cost was $0 if the lease of the respective IBX was classified as an operating lease.
(2) Costs capitalized subsequent to acquisition or lease are net of impairments and include the impact of allocations between land and buildings and improvements following the purchase of previously leased assets.
(3) Buildings and improvements include all fixed assets except for land.
(4) Buildings and improvements are depreciated on a straight-line basis over estimated useful lives as described in Note 1 within the Consolidated Financial Statements.
(5) Date of lease or acquisition represents the date we leased the facility or acquired the facility through purchase or acquisition.
(6) Includes various IBXs that are under initial development and costs incurred at certain central locations supporting various IBX functions.
The aggregate gross cost of our properties for federal income tax purpose approximated $39.0 billion (unaudited) as of December 31, 2025.
F-61
The following table reconciles the historical cost of our properties for financial reporting purposes for each of the years ended December 31, 2025, 2024 and 2023 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Gross Fixed Assets: | |||||||||||||||||
| Balance, beginning of period | $ | 27,909 | $ | 26,614 | $ | 23,803 | |||||||||||
| Additions (including acquisitions and improvements) | 4,989 | 3,266 | 3,117 | ||||||||||||||
| Disposals | (339) | (626) | (589) | ||||||||||||||
| Impairment charges (1) | (101) | (302) | — | ||||||||||||||
| Foreign currency translation adjustments and others | 1,299 | (1,043) | 283 | ||||||||||||||
| Balance, end of year | $ | 33,757 | $ | 27,909 | $ | 26,614 | |||||||||||
| Accumulated Depreciation: | |||||||||||||||||
| Balance, beginning of period | $ | (9,639) | $ | (9,089) | $ | (8,095) | |||||||||||
| Additions (depreciation expense) | (1,464) | (1,413) | (1,317) | ||||||||||||||
| Disposals | 333 | 317 | 413 | ||||||||||||||
| Impairment charges (1) | 57 | 186 | — | ||||||||||||||
| Foreign currency translation adjustments and others | (457) | 360 | (90) | ||||||||||||||
| Balance, end of year | $ | (11,170) | $ | (9,639) | $ | (9,089) |
(1) Refer to Note 17 within the Consolidated Financial Statements.
F-62
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