Equinix allocates £3.8bn in green bonds to support eco-efficient data centres
Thu 4 Jan 2024
Equinix has announced the full allocation of £3.8 billion ($4.9 billion) from its green bonds to enhance the eco-efficiency of its operations and contribute to its goal of achieving climate neutrality by 2030.
Since 2020, Equinix has issued six bond offerings, all of which have been fully allocated as of June 2023.
Green Initiatives and Sustainable Projects
The funds have been used to support 172 green building projects across 105 sites, 33 energy efficiency projects, and two Power Purchase Agreements (PPAs).
These PPAs alone are expected to mitigate or avoid 383,300 metric tons of CO2e annually, equivalent to the emissions from over 85,296 gasoline-powered vehicles driven for a year.
Examples of funded projects include Equinix’s Co-Innovation Facility in Ashburn, Virginia; the MU4 IBX data centre in Aschheim, Germany with hybrid cooling and Aquifer Thermal Energy Storage systems; and the Rush Springs wind farm in Oklahoma.
Equinix also redesigned its chilled water production system at LD5, located in Slough near London. The new system enables the site to harness low outside temperatures during colder months and lowers energy consumption. This project has the potential to result in an average annual avoidance of more than 2,600 metric tons of carbon dioxide equivalent (MTCO2e) due to reduced electricity demand.
Bonding with Sustainability
Equinix has developed a Green Finance Framework in line with the Green Bond Principles and Green Loan Principles to promote transparency and integrity in green debt disclosures. This framework focuses on reducing greenhouse gas emissions, increasing resource efficiency, and driving corporate transparency.
Equinix is allocating 100% of the Green Financing net proceeds to a portfolio of Eligible Green Projects. This includes projects such as green buildings, renewable energy, energy efficiency, sustainable water and wasterwater management, and clean transportation. These are in line with the International Capital Market Association’s Green Bond Principles (GBP) 2018 and the Loan Syndications and Trading Association’s Green Loan Principles (GLP) 2020.
Katrina Rymill, SVP of Corporate Finance & Sustainability at Equinix, said: “Our green bonds demonstrate Equinix’s continued commitment to design, build and deliver the most reliable, secure and sustainable data centre and digital infrastructure possible.”
Equinix reached 96% renewable energy coverage across its global portfolio, achieved an operational annual average PUE of 1.46, and reduced its Scope 1 and 2 carbon footprint by 23% since 2019.
Equinix participates in the Climate Neutral Data Centre Operator Pact and Self-Regulatory Initiative, aiming for carbon neutrality in European data centres by 2030.
The Pact marks the first time the data centre industry has come together to solidify its commitment to ensure that European data centres are carbon neutral by 2030, among other environmental priorities.