Data center company Equinix said it has fully allocated $4.9 billion in investment-grade green bonds to meet its goal of becoming climate-neutral by 2030 and improving the operational eco-efficiency of its business.
The bonds funded 172 green building projects across 105 sites, 33 energy efficiency projects, and two power purchase agreement (PPA) projects over the last five years. The PPA projects supported 225 megawatts of renewable energy capacity, according to the company.
Proceeds from the funds of the bonds supported Equinix’s co-innovation facility in Ashburn, Virginia, where the company trials and showcases its advanced power, cooling, and control methodologies, such as fuel cells and liquid cooling. The methodologies will be used for future data centers. The facility also allows the company to work with suppliers to develop prototype approaches, such as direct-to-chip liquid cooling.
The funds also supported Equinix's MU4 IBX data center, located in Aschheim, Germany, which is designed for optimal efficiency and includes technologies for hybrid cooling and an aquifer thermal energy storage system.
"Equinix considers green bonds a valuable tool to raise capital and finance large projects that can increase the sustainability of our business,” Katrina Rymill, senior vice president of corporate finance and sustainability at Equinix, said in a statement. “Our green bonds demonstrate Equinix's continued commitment to design, build, and deliver the most reliable, secure, and sustainable data center and digital infrastructure possible in order to benefit our customers, the communities in which we operate, our investors, and the planet. Through the allocation of our green bonds, we continue to be able to directly align our financing needs with our sustainability strategy."
Equinix stated its green financing net proceeds are in line with the International Capital Market Association's Green Bond Principles 2018 and the Loan Syndications and Trading Association's Green Loan Principles 2020. It is building a portfolio of eligible green projects, including green buildings; renewable energy; energy efficiency; sustainable water and wastewater management; waste management; and clean transportation.
Equinix has developed a green financing framework using the Green Bond Principles and Green Loan Principles, which is a set of guidelines promoting transparency and integrity in green debt disclosures. The framework aims to help protect the environment and address climate change through reducing greenhouse gas emissions, increasing resource efficiency, and driving corporate transparency and accountability.
