Equinix Reports 7% Revenue Growth to $8.75 Billion for Fiscal Year 2024

Equinix, Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $8.75 billion, a 7% increase from $8.19 billion in 2023. The company's recurring revenues, which account for 94% of total revenues, grew by 6% to $8.18 billion, while non-recurring revenues increased by 27% to $564 million. The Americas region contributed significantly to this growth, with revenues rising by 7% to $3.86 billion, driven by increased demand for non-recurring services and new IBX data center openings. EMEA and Asia-Pacific regions also saw revenue increases of 5% and 11%, respectively, reflecting strong customer demand and successful expansions.

Compared to the previous fiscal year, Equinix experienced notable changes in its operational metrics. The company opened 16 new data centers in 2024, bringing its total to 268 facilities worldwide. This expansion included significant projects in key markets such as Barcelona, Istanbul, and Johannesburg. The total cabinet capacity across all data centers reached 371,400, with a cabinet utilization rate of 78%. The company also reported a total employee headcount of 13,606, reflecting its commitment to scaling operations to meet growing customer needs.

Strategically, Equinix made several key moves during the year, including the formation of joint ventures to develop xScale data centers, which are designed to cater to hyperscale customers. In July, the company announced plans to acquire three data centers in the Philippines for $180 million, expected to close in the first half of 2025. Additionally, Equinix raised $15 billion through a joint venture agreement to accelerate xScale deployment in the U.S., which is anticipated to add over 1.5 gigawatts of new capacity.

The company faced challenges, including increased costs associated with power procurement and higher depreciation expenses due to ongoing expansions. Total costs of revenues rose to $4.47 billion, up 6% from the previous year, primarily driven by higher utility costs and increased compensation expenses. Despite these challenges, Equinix's adjusted EBITDA increased by 11% to $4.1 billion, indicating strong operational efficiency and profitability.

Looking ahead, Equinix remains optimistic about its growth trajectory, with plans to continue expanding its global footprint and enhancing its service offerings. The company anticipates that the ongoing digital transformation and the rise of AI will drive demand for its data center and interconnection services. However, it also acknowledges potential risks, including geopolitical tensions, inflationary pressures, and the need to navigate a complex regulatory landscape. Equinix's management is committed to leveraging its extensive infrastructure and customer base to capitalize on emerging opportunities in the digital economy.