Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The information in this discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, the words "believes," "anticipates," "plans," "expects," "intends" and similar expressions are intended to identify forward-looking statements. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a discrepancy include, but are not limited to, those discussed in "Liquidity and Capital Resources" below and "Risk Factors" in Item 1A of Part II of this Quarterly Report on Form 10-Q. All forward-looking statements in this document are based on information available to us as of the date of this Report and we assume no obligation to update any such forward-looking statements.

Our management's discussion and analysis of financial condition and results of operations is intended to assist readers in understanding our financial information from our management's perspective and is presented as follows:

• Overview

• Results of Operations

• Non-GAAP Financial Measures

• Liquidity and Capital Resources

• Critical Accounting Policies and Estimates

• Recent Accounting Pronouncements

Overview

We provide a global, vendor-neutral data center, interconnection and edge solutions platform with offerings that aim to enable our customers to reach everywhere, interconnect everyone and integrate everything. Global enterprises, service providers and business ecosystems of industry partners rely on our IBX data centers and expertise around the world for the safe housing of their critical IT equipment and to protect and connect the world's most valued information assets. They also look to Platform Equinix® for the ability to directly and securely interconnect to the networks, clouds and content that enable today's information-driven global digital economy. Our recent IBX data center openings and acquisitions, as well as xScaleTM data center investments, have expanded our total global footprint to 270 IBXs, including 21 xScale data centers and the MC1 and SN1 data centers that are held in unconsolidated joint ventures, across 75 markets around the world. We offer the following solutions:

• premium data center colocation;

• interconnection and data exchange solutions;

• edge solutions for deploying networking, security and hardware; and

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• remote expert support and professional services.

Our data centers around the world allow our customers to bring together and interconnect the infrastructure they need to fast-track their digital advantage. With Equinix, they can scale with agility, accelerate the launch of digital offerings, deliver world-class experiences and multiply their value. We enable them to differentiate by distributing infrastructure and removing the distance between clouds, users, and applications in order to reduce latency and deliver a superior customer, partner and employee experience. The Equinix global platform, and the quality of our offerings, have enabled us to establish a critical mass of customers. As more customers choose Platform Equinix for bandwidth cost and performance reasons, it benefits their suppliers and business partners to colocate in the same data centers and connect directly with each other. This adjacency creates a network effect that attracts new customers, continuously enhances our existing customers' value and enables them to capture further economic and performance benefits from our offerings.

Industry Overview:

While a large number of enterprises and service providers, such as hyperscale cloud service providers, own their own data centers, we believe the industry is shifting away from single-tenant solutions to customers outsourcing some or all of their IT housing and interconnection requirements to third-party facilities, such as those operated by Equinix. This shift is being accelerated by the increasing adoption of hybrid multi-cloud architectures and the adoption of artificial intelligence (“AI”).

Historically, the outsourcing market was served by large telecommunications carriers that bundled their products and services with their colocation offerings. The data center market landscape has evolved to include private and carrier-neutral multi-tenant data centers ("MTDC"), public and private cloud providers, managed infrastructure and application hosting providers, large hyperscale cloud providers and systems integrators. It is estimated that Equinix is one of more than 2,400 companies that provide MTDC offerings around the world. The global MTDC market is highly fragmented. Each of these data center solution providers can bundle various colocation, interconnection and network offerings, outsourced IT infrastructure solutions and managed services. We believe that this outsourcing trend has accelerated and is likely to continue to accelerate in the coming years, especially in light of the movement to digital business, the use of multiple cloud service providers, and the adoption of AI. We are able to offer our customers a global platform that reaches 35 countries with the industry’s largest and most active ecosystem of partners in our sites, proven operational reliability, improved application performance and a highly scalable set of offerings.

Capacity Trends:

Our cabinet utilization rate represents the percentage of cabinet space billed versus total cabinet capacity, which is used to measure how efficiently we are managing our cabinet capacity. Our cabinet utilization rate varies from market to market among our IBX data centers across our Americas, EMEA and Asia-Pacific regions. Our cabinet utilization rates were approximately 78% and 79%, as of March 31, 2025 and 2024, respectively. We continue to monitor the available capacity in each of our selected markets. To the extent we have limited capacity available in a given market, it may limit our ability for growth in that market. We perform demand studies on an ongoing basis to determine if future expansion is warranted in a market. In addition, power and cooling requirements for most customers are growing on a per unit basis. As a result, customers are consuming an increasing amount of power per cabinet. Although we generally do not control the amount of power our customers draw from installed circuits, we have negotiated power consumption limitations with certain high power-demand customers. This increased power consumption, which we expect to accelerate with the adoption of AI, has driven us to build out our new IBX data centers to support power and cooling needs twice that of previous IBX data centers. We could face power limitations in our existing IBX data centers, even though we may have additional physical cabinet capacity available within a specific IBX data center, and in our ability to expand our footprint in existing and new markets. Additionally, global supply chain challenges could result in a lack of availability or delays in the delivery of data center equipment. These challenges have driven us to invest in and commit to future purchases in advance of our standard practice to mitigate risks associated with these supply chain issues. These constraints could have a negative impact on our ability to grow revenues, affecting our financial performance, results of operations and cash flows and the growth opportunities presented by the adoption of new technologies, including AI.

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Expansion Opportunities:

To serve the needs of the growing hyperscale data center market, including the world's largest cloud service providers and increased demand driven in part by the adoption of AI, we have entered into joint venture partnership arrangements across our Americas, EMEA and Asia-Pacific regions to develop and operate xScale data centers.

Strategically, we will continue to look at attractive opportunities to grow our market share and selectively improve our footprint and offerings. As was the case with our recent expansions and acquisitions, our expansion criteria will be dependent on a number of factors, including but not limited to demand from new and existing customers, power availability and capacity, quality of the design, access to networks, clouds and software partners, capacity availability in the current market location, amount of incremental investment required by us in the targeted property, automation capabilities, developer talent pool, lead-time to break even on a free cash flow basis and in-place customers. Like our recent expansions and acquisitions, the right combination of these factors may be attractive to us. Depending on the circumstances, these transactions may require additional capital expenditures funded by upfront cash payments or through long-term financing arrangements in order to bring these properties up to our standards. Property expansion may be in the form of purchases of real property, long-term leasing arrangements or acquisitions. Future purchases, construction or acquisitions may be completed by us or with partners or potential customers to minimize the outlay of cash, which can be significant.

Revenue:

Our business is primarily based on a recurring revenue model comprised of colocation and related interconnection and managed infrastructure offerings. We consider these offerings recurring because our customers are generally billed on a fixed and recurring basis each month for the duration of their contract, which is generally one to five years in length, and thereafter automatically renews in one-year increments. Our recurring revenues have comprised more than 90% of our total revenues during the past three years. In addition, during the past three years, more than 90% of our monthly recurring revenue bookings came from existing customers, contributing to our revenue growth. Our largest customer accounted for approximately 3% of our recurring revenues for both the three months ended March 31, 2025 and 2024. Our 50 largest customers accounted for approximately 36% of our recurring revenues for the three months ended March 31, 2025 and 37% of our recurring revenues for the three months ended March 31, 2024.

Our non-recurring revenues are primarily derived from fees charged from installations related to a customer's initial deployment and professional services we perform for our customers, including our joint ventures. These services are considered to be non-recurring because they are billed typically once, upon completion of the installation or the professional services work performed. The majority of these non-recurring revenues are typically billed on the first invoice distributed to the customer in connection with their initial installation. However, revenues from installations are deferred and recognized ratably over the period of the contract term. Additionally, revenue from contract settlements, when a customer wishes to terminate their contract early, is generally treated as a contract modification and recognized ratably over the remaining term of the contract, if any. As a percentage of total revenues, we expect non-recurring revenues to represent less than 10% of total revenues for the foreseeable future.

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Operating Expenses:

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

Sales and Marketing. Our sales and marketing expenses consist primarily of compensation and related costs for sales and marketing personnel, including stock-based compensation, amortization of contract costs, marketing programs, public relations, promotional materials and travel, as well as bad debt expense and amortization of customer relationship intangible assets.

General and Administrative. Our general and administrative expenses consist primarily of salaries and related expenses, including stock-based compensation, accounting, legal and other professional service fees, and other general corporate expenses, such as our corporate regional headquarters office leases and depreciation expense on back office systems.

Taxation as a REIT:

We elected to be taxed as a REIT for U.S. federal income tax purposes beginning with our 2015 taxable year. As of March 31, 2025, our REIT structure included a majority of our data center operations in the Americas and EMEA regions, as well as the data center operations in Japan, Singapore, and Malaysia. Our data center operations in other jurisdictions are operated as taxable REIT subsidiaries ("TRSs"). We have also included our share of the assets in xScale joint ventures (with the exception of Korea) in our REIT structure.

As a REIT, we generally are permitted to deduct from our U.S. federal taxable income the dividends we pay to our stockholders. The taxable income represented by such dividends is not subject to U.S. federal income taxes at the entity level but is taxed in the U.S., if at all, at the stockholder level. Depending on a shareholder’s citizenry and residency, the income could be taxed by other jurisdictions as well. Nevertheless, the income of our TRSs which hold our U.S. operations is subject to U.S. federal and state corporate income taxes, as applicable. Likewise, our foreign subsidiaries continue to be subject to local income taxes in jurisdictions in which they hold assets or conduct operations, regardless of whether held or conducted through TRSs or through qualified REIT subsidiaries ("QRSs") for U.S. income tax purposes. We are also subject to a separate U.S. federal corporate income tax on any gain recognized from a sale of a REIT asset where our basis in the asset is determined by reference to the basis of the asset in the hands of a C corporation (such as an asset held by us or a QRS following the liquidation or other conversion of a former TRS). This built-in-gain tax is generally applicable to any disposition of such an asset during the five-year period after the date we first owned the asset as a REIT asset to the extent of the built-in-gain based on the fair market value of such asset on the date we first held the asset as a REIT asset. In addition, should we recognize any gain from "prohibited transactions," we will be subject to tax on this gain at a 100% rate. "Prohibited transactions," for this purpose, are defined as dispositions of inventory or property held primarily for sale to customers in the ordinary course of a trade or business other than dispositions of foreclosure property and other than dispositions excepted by statutory safe harbors. If we fail to remain qualified for U.S. federal income taxation as a REIT, we will be subject to U.S. federal income taxes at regular corporate income tax rates. Even if we remain qualified for U.S. federal income taxation as a REIT, we may be subject to some federal, state, local and foreign taxes on our income and property in addition to taxes owed with respect to our TRSs' operations. In particular, while state income tax regimes often parallel the U.S. federal income tax regime for REITs, many states do not completely follow federal rules, and some may not follow them at all.

We continue to monitor our REIT compliance in order to maintain our qualification for U.S. federal income taxation as a REIT. For this and other reasons, as necessary, we may convert some of our data center operations in other countries into the REIT structure in future periods.

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On March 19, 2025, we paid a quarterly cash dividend of 4.69 per share. On April 30, 2025, we declared a quarterly cash dividend of $4.69 per share, payable on June 18, 2025, to our common stockholders of record as of the close of business on May 21, 2025. We expect all of our 2025 quarterly distributions and other applicable distributions to equal or exceed our REIT taxable income to be recognized in 2025.

2025 Highlights:

• In February and March, 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. See Note 11 within the Condensed Consolidated Financial Statements.

• In March, we issued SGD500 million, or approximately $370 million, at the exchange rate in effect on March 13, 2025, aggregate principal amount of 3.500% senior notes due March 15, 2030. See Note 9 within the Condensed Consolidated Financial Statements.

Results of Operations

In order to provide a framework for assessing our performance excluding the impact of foreign currency fluctuations, we supplement the year-over-year actual change in results of operations with comparative changes on a constant currency basis. Presenting constant currency results of operations is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for further discussion.

Three Months Ended March 31, 2025 and 2024

Revenues. Our revenues for the three months ended March 31, 2025 and 2024 were generated from the following revenue classifications and geographic regions ($ in millions):

			Three Months Ended March 31,																								$ Change						% Change
			2025						%						2024						%						Actual						Actual						Constant Currency (1)
Americas:
Recurring revenues			$	931					42		%				$	894					42		%				$	37					4		%				6		%
Non-recurring revenues			70						3		%				45						2		%				25						56		%				58		%
			1,001						45		%				939						44		%				62						7		%				9		%
EMEA:
Recurring revenues			716						32		%				691						32		%				25						4		%				5		%
Non-recurring revenues			27						1		%				36						2		%				(9)						(25)		%				(22)		%
			743						33		%				727						34		%				16						2		%				3		%
Asia-Pacific:
Recurring revenues			440						20		%				425						20		%				15						4		%				7		%
Non-recurring revenues			41						2		%				36						2		%				5						14		%				18		%
			481						22		%				461						22		%				20						4		%				7		%
Total:
Recurring revenues			2,087						94		%				2,010						94		%				77						4		%				6		%
Non-recurring revenues			138						6		%				117						6		%				21						18		%				21		%
			$	2,225					100		%				$	2,127					100		%				$	98					5		%				7		%

(1)As defined in the "Non-GAAP Financial Measures" section in Item 2 of this Quarterly Report on Form 10-Q.

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Revenues

(in millions)

Americas Revenues. During the three months ended March 31, 2025, Americas revenues increased by $62 million or 7% (9% on a constant currency basis). Growth in Americas revenues was primarily due to:

• $25 million of incremental revenues from non-recurring services provided to our joint ventures;

• approximately $19 million of incremental revenues generated from IBX data centers which opened within the twelve months ended March 31, 2025; and

• an increase in orders from both our existing customers and new customers during the period.

EMEA Revenues. During the three months ended March 31, 2025, EMEA revenues increased by $16 million or 2% (3% on a constant currency basis). The increase in EMEA revenues was primarily due to an increase in orders from both our existing customers and new customers during the period and approximately $9 million of incremental revenues generated from IBX data centers which opened within the twelve months ended March 31, 2025.

Asia-Pacific Revenues. During the three months ended March 31, 2025, Asia-Pacific revenues increased by $20 million or 4% (7% on a constant currency basis). Growth in Asia-Pacific revenues was primarily due to:

• approximately $13 million of incremental revenues generated from IBX data centers which opened within the twelve months ended March 31, 2025; and

• an increase in orders from both our existing customers and new customers during the period.

Cost of Revenues. Our cost of revenues for the three months ended March 31, 2025 and 2024 by geographic regions was as follows ($ in millions):

			Three Months Ended March 31,																								$ Change						% Change
			2025						%						2024						%						Actual						Actual						Constant Currency
Americas			$	451					42		%				$	441					40		%				$	10					2		%				4		%
EMEA			393						36		%				426						39		%				(33)						(8)		%				(6)		%
Asia-Pacific			240						22		%				224						21		%				16						7		%				11		%
Total			$	1,084					100		%				$	1,091					100		%				$	(7)					(1)		%				2		%

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Cost of Revenues

($ in millions; percentages indicate expenses as a percentage of revenues)

Americas Cost of Revenues. During the three months ended March 31, 2025, Americas cost of revenues increased by $10 million or 2% (4% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to:

• $11 million of costs to provide non-recurring services;

• $6 million of higher rent and other facilities costs; and

• $5 million of higher utilities costs.

The increase was primarily offset by a decrease of $14 million in depreciation expense due to the acceleration of depreciation expense for certain assets with shortened useful lives during the comparative period.

EMEA Cost of Revenues. During the three months ended March 31, 2025, EMEA cost of revenues decreased by $33 million or 8% (6% on a constant currency basis). The decrease in our EMEA cost of revenues was primarily due to lower utilities costs, driven by both decreases in power costs and lower utility usage in the United Kingdom offset by increased costs to provide non-recurring services.

Asia-Pacific Cost of Revenues. During the three months ended March 31, 2025, Asia-Pacific cost of revenues increased by $16 million or 7% (11% on a constant currency basis). The increase in our Asia-Pacific cost of revenues was primarily due to $17 million of costs to provide non-recurring services.

We expect cost of revenues to increase across all three regions in line with the growth of our business, including from the impact of acquisitions.

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Sales and Marketing Expenses. Our sales and marketing expenses for the three months ended March 31, 2025 and 2024 by geographic regions were as follows ($ in millions):

			Three Months Ended March 31,																								$ Change						% Change
			2025						%						2024						%						Actual						Actual						Constant Currency
Americas			$	153					67		%				$	151					67		%				$	2					1		%				2		%
EMEA			51						22		%				47						21		%				4						9		%				10		%
Asia-Pacific			25						11		%				28						12		%				(3)						(11)		%				(6)		%
Total			$	229					100		%				$	226					100		%				$	3					1		%				3		%

Sales and Marketing Expenses

($ in millions; percentages indicate expenses as a percentage of revenues)

Americas Sales and Marketing Expenses. Our Americas sales and marketing expense did not materially change during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

EMEA Sales and Marketing Expens**es. Our EMEA sales and marketing expense did not materially change during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Asia-Pacific Sales and Marketing Expenses. Our Asia-Pacific sales and marketing expense did not materially change during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

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

General and Administrative Expenses*.* Our general and administrative expenses for the three months ended March 31, 2025 and 2024 by geographic regions were as follows ($ in millions):

			Three Months Ended March 31,																								$ Change						% Change
			2025						%						2024						%						Actual						Actual						Constant Currency
Americas			$	300					69		%				$	308					69		%				$	(8)					(3)		%				(1)		%
EMEA			80						18		%				80						18		%				—						—		%				—		%
Asia-Pacific			58						13		%				56						13		%				2						4		%				5		%
Total			$	438					100		%				$	444					100		%				$	(6)					(1)		%				—		%

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General and Administrative Expenses

($ in millions; percentages indicate expenses as a percentage of revenues)

Americas General and Administrative Expense**s. During the three months ended March 31, 2025, Americas general and administrative expenses decreased by $8 million or 3% (1% on a constant currency basis). The decrease in our Americas general and administrative expenses was primarily due $21 million of lower depreciation expense due to the acceleration of depreciation expense for certain assets with shortened useful lives during the comparative period. This decrease was substantially offset by higher compensation costs, including salaries, bonuses and stock-based compensation, primarily due to headcount growth.

EMEA General and Administrative Expenses. Our EMEA general and administrative expenses did not materially change during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Asia-Pacific General and Administrative Expenses. Our Asia-Pacific general and administrative expenses did not materially change during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

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

Restructuring Charges. During the three months ended March 31, 2025, we recorded restructuring charges of $10 million primarily related to severance and other employee costs. We did not record any restructuring charges during the three months ended March 31, 2024. See Note 12 within the Consolidated Financial Statements.

Transaction costs. During the three months ended March 31, 2025 and 2024, we did not record a significant amount of transaction costs. See Note 5 within the Condensed Consolidated Financial Statements.

Gain or Loss on Asset Sales. During the three months ended March 31, 2025 and 2024, we did not record a significant amount of gain or loss on asset sales. See Note 5 within the Condensed Consolidated Financial Statements.

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Income from Operations. Our income from operations for the three months ended March 31, 2025 and 2024 by geographic regions was as follows ($ in millions):

			Three Months Ended March 31,																								$ Change						% Change
			2025						%						2024						%						Actual						Actual						Constant Currency
Americas			$	86					19		%				$	37					10		%				$	49					132		%				140		%
EMEA			215						47		%				173						48		%				42						24		%				23		%
Asia-Pacific			157						34		%				154						42		%				3						2		%				5		%
Total			$	458					100		%				$	364					100		%				$	94					26		%				27		%

Americas Income from Operations. During the three months ended March 31, 2025, Americas income from operations increased by $49 million or 132% (140% on a constant currency basis), primarily due to higher revenues as a result of non-recurring services provided to our joint ventures, IBX data center expansion activity and organic growth, as described above.

EMEA Income from Operations. During the three months ended March 31, 2025, EMEA income from operations increased by $42 million or 24% (23% on a constant currency basis), primarily due to higher revenues as a result of IBX data center expansion activity and organic growth, as described above.

Asia-Pacific Income from Operations. During the three months ended March 31, 2025, Asia-Pacific income from operations increased by $3 million or 2% (5% on a constant currency basis), primarily due to IBX data center expansion activity and organic growth, as described above.

Interest Income. Interest income was $47 million for the three months ended March 31, 2025 and was $24 million for the three months ended March 31, 2024. The increase was primarily due to interest income earned on time deposits as well as on the AMER 2 Loan further described in Note 5 within the Condensed Consolidated Financial Statements.

Interest Expense. Interest expense increased to $122 million for the three months ended March 31, 2025 from $104 million for the three months ended March 31, 2024, primarily due to the following debt issuances:

• the issuance of the 5.500% Senior Notes due 2034 in the second quarter of 2024;

• the issuances of the 3.650% Euro Senior Notes due 2033 and the 1.558% Swiss Franc Senior Notes due 2029 in the third quarter of 2024;

• the issuances of the 3.250% Euro Senior Notes due 2031 and the 3.625% Euro Senior Notes due 2034 in the fourth quarter of 2024; and

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

During the three months ended March 31, 2025 and 2024, we capitalized $11 million and $9 million, respectively, of interest expense to construction in progress. See Note 9 within the Condensed Consolidated Financial Statements.

Other Income or Expense. We did not record a significant amount of other income or expense during the three months ended March 31, 2025 and 2024. See Note 5 within the Condensed Consolidated Financial Statements.

Gain or Loss on Debt Extinguishment. We did not record a significant amount of gain or loss on debt extinguishment during the three months ended March 31, 2025 and 2024.

Income Taxes. We operate as a REIT for U.S. federal income tax purposes. As a REIT, we are generally not subject to U.S. federal income taxes on our taxable income distributed to stockholders. We intend to distribute or have distributed the entire taxable income generated by the operations of our REIT and QRSs for the tax years ending December 31, 2025 and 2024, respectively. As such, other than certain state income taxes and foreign income and withholding taxes, no provision for income taxes has been included for our REIT and QRSs in the accompanying condensed consolidated financial statements for the three months ended March 31, 2025 and 2024.

We have made TRS elections for some of our subsidiaries in and outside the U.S. In general, a TRS may provide services that would otherwise be considered impermissible for REITs to provide and may hold assets that may not be REIT compliant.

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U.S. income taxes for the TRS entities located in the U.S. and foreign income taxes for our foreign operations, regardless of whether the foreign operations are operated as QRSs or TRSs, have been accrued, as necessary, for the three months ended March 31, 2025 and 2024.

For the three months ended March 31, 2025 and 2024, we recorded $49 million and $46 million of income tax expense, respectively. Our effective tax rates were 12.5% and 16.6%, for the three months ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate for the three months ended March 31, 2025 as compared to the same period in 2024 was primarily due to higher income in the U.S. that is not subject to U.S. corporate income taxes, either due to the release of a valuation allowance or the REIT's lower tax rate.

Adjusted EBITDA. Adjusted EBITDA is a key factor in how we assess the operating performance of our segments and develop regional growth strategies such as IBX data center expansion decisions. We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs, and gain or loss on asset sales. See "Non-GAAP Financial Measures" below for more information about adjusted EBITDA and a reconciliation of adjusted EBITDA to net income. Our adjusted EBITDA for the three months ended March 31, 2025 and 2024 by geographic regions was as follows ($ in millions):

			Three Months Ended March 31,																								$ Change						% Change
			2025						%						2024						%						Actual						Actual						Constant Currency
Americas			$	443					42		%				$	409					41		%				$	34					8		%				10		%
EMEA			365						34		%				328						33		%				37						11		%				12		%
Asia-Pacific			259						24		%				255						26		%				4						2		%				5		%
Total			$	1,067					100		%				$	992					100		%				$	75					8		%				9		%

Americas Adjusted EBITDA. During the three months ended March 31, 2025, Americas adjusted EBITDA increased by $34 million or 8% (10% on a constant currency basis), primarily due to higher revenues as a result of non-recurring services provided to our joint ventures, IBX data center expansion activity and organic growth, as described above, partially offset by higher costs of revenues and higher general and administrative expenses.

EMEA Adjusted EBITDA. During the three months ended March 31, 2025, EMEA adjusted EBITDA increased by $37 million or 11% (12% on a constant currency basis), primarily due to higher revenues as a result of IBX data center expansion activity and organic growth, as described above.

Asia-Pacific Adjusted EBITDA. During the three months ended March 31, 2025, Asia-Pacific adjusted EBITDA increased by $4 million or 2% (5% on a constant currency basis), primarily due to IBX data center expansion activity and organic growth, as described above.

Non-GAAP Financial Measures

We provide all information required in accordance with GAAP, but we believe that evaluating our ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, we use non-GAAP financial measures to evaluate our operations.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. We have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our results of operations in a manner that focuses on what management believes to be our core, ongoing business operations. We believe that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and ability to perform in subsequent periods. We believe that if we did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze us effectively.

Investors should note that the non-GAAP financial measures used by us may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should

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therefore exercise caution when comparing non-GAAP financial measures used by us to similarly titled non-GAAP financial measures of other companies.

Our primary non-GAAP financial measures, adjusted EBITDA and adjusted funds from operations ("AFFO"), exclude depreciation expense as these charges primarily relate to the initial construction costs of our IBX data centers and do not reflect our current or future cash spending levels to support our business. Our IBX data centers are long-lived assets and have an economic life greater than 10 years. The construction costs of an IBX data center do not recur with respect to such data center, and future capital expenditures remain minor relative to our initial investment throughout its useful life. Construction costs in future periods are primarily incurred with respect to additional IBX data centers. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX data centers. These estimates could vary from actual performance of the asset, are based on historical costs incurred to build out our IBX data centers and are not indicative of current or expected future capital expenditures. Therefore, we exclude depreciation from our results of operations when evaluating our operations.

In addition, in presenting adjusted EBITDA and AFFO, we exclude amortization expense related to acquired intangible assets. Amortization expense is significantly affected by the timing and magnitude of our acquisitions and these charges may vary in amount from period to period. We exclude amortization expense to facilitate a more meaningful evaluation of our current operating performance and comparisons to our prior periods. We exclude accretion expense, both as it relates to asset retirement obligations as well as accrued restructuring charge liabilities, as these expenses represent costs which we believe are not meaningful in evaluating our current operations. We also exclude restructuring charges. Such charges include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products. We also exclude impairment charges related to goodwill or long-lived assets. We also exclude gain or loss on asset sales as it represents profit or loss that is not meaningful in evaluating the current or future operating performance. Additionally, we exclude transaction costs from AFFO and adjusted EBITDA to enhance the comparability of our financial results to our historical operations. The transaction costs relate to costs we incur in connection with business combinations and the formation of joint ventures, including advisory, legal, accounting, valuation, and other professional or consulting fees. Such charges generally are not relevant to assessing our long-term performance. In addition, the frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management believes items such as restructuring charges, impairment charges, gain or loss on asset dispositions and transaction costs are non-core transactions; however, these types of costs may occur in future periods. Finally, we exclude stock-based compensation expense, as it can vary significantly from period to period based on share price, and the timing, size and nature of equity awards. As such, we, and many investors and analysts, exclude stock-based compensation expense to compare our results of operations with those of other companies.

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Adjusted EBITDA

We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below (in millions):

									Three Months Ended March 31,
															2025						2024
Net income															$	343					$	231
Income tax expense															49						46
Interest income															(47)						(24)
Interest expense															122						104
Other (income) expense															(9)						6
(Gain) loss on debt extinguishment															—						1
Depreciation, amortization, and accretion expense															480						525
Stock-based compensation expense															113						101
Restructuring charges															10						—
Transaction costs															6						2
Adjusted EBITDA															$	1,067					$	992

Our adjusted EBITDA results have increased each year in total dollars due to the factors discussed earlier in "Results of Operations", as well as due to the nature of our business model consisting of a recurring revenue stream and a cost structure which has a large base that is fixed in nature, as also discussed in "Overview".

Funds from Operations ("FFO") and AFFO

We use FFO and AFFO, which are non-GAAP financial measures commonly used in the REIT industry. FFO is calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. FFO represents net income (loss), excluding gain (loss) from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

In presenting AFFO, we exclude certain items that we believe are not good indicators of our current or future operating performance. AFFO represents FFO excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain (loss) from the disposition of non-real estate assets, gain (loss) on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income (loss) from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items. The adjustments for installation revenue, straight-line rent expense and contract costs are intended to isolate the cash activity included within the straight-lined or amortized results in the condensed consolidated statement of operations. We exclude the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with debt financings that have no current or future cash obligations. We exclude gain (loss) on debt extinguishment since it generally represents the write-off of initial costs incurred in connection with debt financings or a cost that is incurred to reduce future interest costs and is not a good indicator of our current or future operating performance. We include an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes that do not relate to current period's operations. We deduct recurring capital expenditures, which represent expenditures to extend the useful life of IBX data centers or other assets that are required to support current revenues. We also exclude net income (loss) from discontinued operations, net of tax, which represents results that may not recur and are not a good indicator of our current or future operating performance.

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Our FFO and AFFO were as follows (in millions):

									Three Months Ended March 31,
															2025						2024
Net income															$	343					$	231
Net (income) loss attributable to non-controlling interests															—						—
Net income attributable to common stockholders															343						231
Adjustments:
Real estate depreciation															297						316
Adjustments for FFO from unconsolidated joint ventures															7						6
FFO attributable to common stockholders															$	647					$	553
									Three Months Ended March 31,
															2025						2024
FFO attributable to common stockholders															$	647					$	553
Adjustments:
Installation revenue adjustment															2						(2)
Straight-line rent expense adjustment															3						6
Contract cost adjustment															(7)						(8)
Amortization of deferred financing costs and debt discounts															5						5
Stock-based compensation expense															113						101
Non-real estate depreciation expense															134						158
(Gain) loss on disposition of non-real estate assets															2						—
Amortization expense															48						52
Accretion expense adjustment															1						(1)
Recurring capital expenditures															(26)						(21)
(Gain) loss on debt extinguishment															—						1
Restructuring charges															10						—
Transaction costs															6						2
Income tax expense adjustment															6						—
Adjustments for AFFO from unconsolidated joint ventures															3						(3)
AFFO attributable to common stockholders															$	947					$	843

Our AFFO results have improved due to the factors discussed earlier in "Results of Operations," as well as due to the nature of our business model which consists of a recurring revenue stream and a cost structure which has a large base that is fixed in nature as discussed earlier in "Overview."

Constant Currency Presentation

Our revenues and certain operating expenses (cost of revenues, sales and marketing and general and administrative expenses) from our international operations have represented and will continue to represent a significant portion of our total revenues and certain operating expenses. As a result, our revenues and certain operating expenses have been and will continue to be affected by changes in the U.S. dollar against major international currencies. There were no significant impacts from currencies that were comparably stronger to the U.S. dollar during the three months ended March 31, 2025 as compared to the same period in 2024. During the three months ended March 31, 2025 as compared to the same period in 2024, the U.S. dollar was stronger relative to the Euro and Japanese Yen, which resulted in an unfavorable foreign currency impact on revenue and operating income, and a favorable foreign currency impact on operating expenses. In order to provide a framework for assessing how each of our business segments performed excluding the impact of foreign currency fluctuations, we present period-over-period percentage changes in our revenues and certain operating expenses on a constant currency basis in addition to the historical amounts as reported. Our constant currency presentation excludes the impact of our foreign currency cash flow hedging activities. Presenting constant currency results of operations is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of

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operations. However, we have presented this non-GAAP financial measure to provide investors with an additional tool to evaluate our results of operations. To present this information, our current period revenues and certain operating expenses denominated in currencies other than the U.S. dollar are converted into U.S. dollars at constant exchange rates rather than the actual exchange rates in effect during the respective periods (i.e. average rates in effect for the three months ended March 31, 2024 are used as exchange rates for the three months ended March 31, 2025 when comparing the three months ended March 31, 2025 with the three months ended March 31, 2024).

Liquidity and Capital Resources

Sources and Uses of Cash

Customer collections are our primary source of cash. We believe we have a strong customer base, and have continued to experience relatively strong collections. As of March 31, 2025, our principal sources of liquidity were $3.7 billion of cash, cash equivalents and short-term investments. In addition to our cash balance, we had $3.9 billion of additional liquidity available to us from our $4.0 billion revolving facility and general access to both public and private debt and the equity capital markets. We also have additional liquidity available to us from our 2024 ATM program, under which we may offer and sell from time to time our common stock in "at the market" transactions on either a spot or forward basis. As of March 31, 2025, we had approximately $1.2 billion available for sale remaining under the 2024 ATM Program.

We believe we have sufficient cash, coupled with anticipated cash generated from operating activities and external financing sources, to meet our operating requirements, including repayment of the current portion of our debt as it becomes due, distribution of dividends and completion of our publicly announced acquisitions, ordinary costs to operate the business, and expansion projects.

As we continue to grow, we may pursue additional expansion opportunities, primarily the build out of new IBX data centers, in certain of our existing markets which are at or near capacity within the next year, as well as potential acquisitions and joint ventures. If the opportunity to expand is greater than planned we may further increase the level of capital expenditure to support this growth as well as pursue additional business and real estate acquisitions or joint ventures, provided that we have or can access sufficient funding to pursue such expansion opportunities. We may elect to access the equity or debt markets from time to time opportunistically, particularly if financing is available on attractive terms. We will continue to evaluate our operating requirements and financial resources in light of future developments.

Cash Flow

Our net cash provided by (used in) operating, investing and financing activities for the three months ended March 31, 2025 and 2024 were as follows (in millions):

			Three Months Ended March 31,
			2025						2024						Change
Net cash provided by operating activities			$	809					$	598					$	211
Net cash used in investing activities			(964)						(727)						(237)
Net cash provided by (used in) financing activities			15						(397)						412

Operating Activities

Net cash provided by our operations is generated by colocation, interconnection, managed infrastructure and other revenues. Our primary uses of cash from our operating activities include compensation and related costs, interest payments, other general corporate expenditures and taxes. Net cash provided by operating activities increased by $211 million during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily driven by improved results of operations offset by increases in cash paid for costs and operating expenses.

Investing Activities

Net cash used in investing activities increased by $237 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to:

• $190 million increase in purchases of short-term investments;

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• $43 million increase in capital expenditures; and

• $40 million increase in purchase of equity investments.

This increase was partially offset by a $32 million increase in the settlement of foreign currency hedges.

Financing Activities

Net cash provided by financing activities increased by $412 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily driven by:

• $370 million increase in proceeds from senior notes; and

• $99 million increase in proceeds from the 2024 ATM Programs.

This increase was partially offset by a $56 million increase in dividend distributions.

Material Cash Commitments

As of March 31, 2025, our principal commitments were primarily comprised of:

• approximately $15.2 billion of principal from our senior notes (gross of debt issuance costs and debt discounts);

• approximately $3.5 billion of interest on mortgage payable, other loans payable, senior notes and term loans, based on their respective interest rates and recognized over the life of these instruments, and the credit facility fee for the revolving credit facility;

• $667 million of principal from our term loans, mortgage payable and other loans payable (gross of debt issuance costs and debt discounts);

• approximately $5.5 billion of total lease payments, which represents lease payments under finance and operating lease arrangements, including renewal options that are reasonably certain to be exercised;

• approximately $3.8 billion of unaccrued capital expenditure contractual commitments, primarily for IBX equipment not yet delivered and labor not yet provided in connection with the work necessary to complete construction and open IBX data center expansion projects prior to making them available to customers for installation, the majority of which is payable within the next 12 months; and

• approximately $2.1 billion of other non-capital purchase commitments, such as commitments to purchase power in select locations and other open purchase orders, which contractually bind us for goods, services or arrangements to be delivered or provided during the remainder of 2025 and beyond, the majority of which is payable within the next two years.

We believe that our sources of liquidity, including our expected future operating cash flows, are sized to adequately meet both the near- and long-term material cash commitments for the foreseeable future. For further information on maturities of lease liabilities and debt instruments, see Notes 8 and 9, respectively, within the Condensed Consolidated Financial Statements.

Other Contractual Obligations

We have additional future equity contributions and loan commitments to our joint ventures. For additional information, see the "Equity Method Investments" footnote within the Condensed Consolidated Financial Statements.

Additionally, we entered into lease agreements with various landlords primarily for data center spaces and ground leases which have not yet commenced as of March 31, 2025. For additional information, see “Maturities of Lease Liabilities” in Note 8 within the Condensed Consolidated Financial Statements.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements and accompanying notes are prepared in accordance with U.S. GAAP. The preparation of our financial statements requires management to make estimates and assumptions about future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates the accounting policies, assumptions, estimates and judgments to ensure that our condensed consolidated financial statements are presented fairly and in accordance

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with U.S. GAAP. Management bases its assumptions, estimates and judgments on historical experience, current trends and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. However, because future events and their effects cannot be determined with certainty, actual results may differ from these assumptions and estimates, and such differences could be material. Critical accounting policies for Equinix that affect our more significant judgment and estimates used in the preparation of our condensed consolidated financial statements include accounting for income taxes, accounting for business combinations, accounting for impairment of goodwill and other intangibles assets, accounting for property, plant and equipment and accounting for leases, which are discussed in more detail under the caption "Critical Accounting Estimates" in Management's Discussion and Analysis of Financial Condition and Results of Operations, set forth in Part II Item 7, of our Annual Report on Form 10-K for the year ended December 31, 2024.

Recent Accounting Pronouncements

See Note 1 of Notes to Condensed Consolidated Financial Statements in Part I Item 1 of this Quarterly Report on Form 10-Q.