Equinix has issued $750 million in green bonds across two offerings, and says it will use the proceeds to advance sustainability initiatives across its business.
The colo provider says the latest rounds mean it has raised $5.6 billion of green bonds, making it one of the top 10 largest US corporate issuers in the market.
"Green bonds serve as a valuable means to secure funding and support significant initiatives that enhance the sustainability of our operations," explains Katrina Rymill, SVP for corporate finance and sustainability at Equinix. "Over the last five years, our green bonds have funded 172 green building projects across 105 sites, 33 energy efficiency projects and two Power Purchase Agreement (PPA) projects.”
Rymill added that green bonds “underscore Equinix's dedication to build[ing] energy-efficient infrastructure, implement renewable energy sources and reduce our carbon emissions. Through the allocation of our green bonds, we have been able to directly align our financing needs with our sustainability strategy."
Green bonds are a financial instrument where the proceeds have to be used to fund sustainability projects. They guarantee investors a set return over the lifetime of the bond. In the case of Equinix’s latest offering, the bonds are due to mature in 2033.
Equinix said the funding will be towards initiatives that “form the backbone of the company's sustainability mission,” which include green building development and renewable energy innovations, as well as advanced energy efficiency, resource conservation and decarbonization solutions.
The company issued green bonds worth $1.2bn in 2022, and in December 2023 allocated bonds worth $4.9 billion to 172 green building projects on 105 sites, along with 33 energy efficiency projects.
Projects funded in the past have included the Equinix Co-Innovation Facility in Ashburn, Virginia, which tests advanced power, cooling, and control methodologies, including direct-to-chip liquid cooling technologies.
The company also used green bonds to fit its MU4 IBX data center in Aschheim, Germany, with hybrid cooling technologies and sustainable energy storage systems.
