Equinix scores $1.7 billion in Q2 revenue plus Fortune 500 status

Equinix raked in $1.7 billion in second quarter revenue, up 8% year-over-year, and has achieved Fortune 500 status. The company expects total revenues for 2021 to range between $6.6 and $6.7 billion, a 10% to 11% increase since 2020.

This is Equinix's 74^th straight quarter of revenue growth, and revenue is up 4% since the first quarter. In addition, the data center company says it has reached over 400,00 interconnections and interconnection revenues were up 12% year-over-year.

Equinix's capital expenditures in Q2 reached about $692 million, including recurring CapEx of $45 billion. During a financial call with analysts, Simon Flannery of Morgan Stanley asked if challenges facing the supply chain have had an impact on Equinix's operations.

On the supply chain question, "Suffice it to say, we've been investing quite heavily," responded Keith Taylor, CFO for Equinix. "You've heard us speak about it in our procurement and strategic sourcing initiatives under a very strong leadership. And as a result, we are getting ahead of some of the perceived constraints in the marketplace."

However, Q3 is projected to hit some speed bumps in terms of non-recurring revenues. "We expect the Q3 non-recurring revenues to decrease by $8 million compared to Q2," said Keith Taylor, CFO for Equinix.

Taylor also touched on geographical growth for the company: "APAC has the highest year-over-year revenue growth of 11% followed by the Americas and EMEA region both at 8%."

Channel sales accounted for over 35% of bookings for Equinix in Q2. The company has also recently invested heavily in its xScale data centers – earmarking $6.9 billion across 32 global facilities in partnership with GIC, Singapore's sovereign wealth fund, to deliver over 600 megawatts of power capacity. The xScale data centers are part of Equinix's global footprint of over 220 International Business Exchange (IBX) data centers that support workloads of hyperscalers and large cloud service providers.

In the second quarter, Equinix also committed to reaching climate-neutral status by 2030, with a goal of reducing its "Scope 1 and 2 emissions (direct and indirect from electricity) by 50% by 2030 against a 2019 baseline."

"In early June, we became the first in the data center industry to commit to being Climate Neutral by 2030, backed by science-based targets, an aggressive green financing plan and a comprehensive sustainability agenda," said Charles Meyers, president and CEO for Equinix.

Equinix will also issue a quarterly cash dividend of $2.87 per share on its common stock.

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— Kelsey Kusterer Ziser, Senior Editor, Light Reading