Data center and digital infrastructure company Equinix announced today that it has issued €1.15 billion (USD$1.21 billion) in green bonds, with proceeds aimed at financing green projects at the company including renewable energy and decarbonization solutions.

The issuance, which included €650 million principal amount of 3.25% senior green notes due 2031 and €500 million principal amount of 3.625% senior green notes due 2034, follows a $750 million green bond offering by the company in September 2024, and establishes Equinix as a top 5 issuer of green bonds in the U.S. at $6.9 billion total issuance to date, the company said.

Equinix issued its updated Green Finance Framework earlier this year, detailing eligible use of proceeds from green bond offerings. Project categories eligible for investment under the framework include green buildings, renewable and clean energy, energy efficiency, resource conservation, decarbonization solutions, and climate change adaptation.

The offering comes as AI-driven growth is driving a rapid increase in demand for data centers, and for energy infrastructure to power them.. Over the past few months, several major tech companies, such as Microsoft, Google and Amazon, have highlighted increased energy needs to meet the AI-driven growth in data centers as a key challenge to their decarbonization goals. According to the International Energy Agency (IEA), data centers consumed 460TWh in 2022, with this figure projected to possibly double by 2026.

Equinix has set goals to reduce absolute Scopes 1 and
2 GHG emissions by 50% and Scope 3 GHG emissions from fuel- and energy-related activities by 50% by 2030, in addition to a 2030 target to achieve 100% renewable energy.

Katrina Rymill, SVP Corporate Finance & Sustainability at Equinix, said:

“We view green finance as an integral part of our sustainability strategy at Equinix. 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, our investors, and the communities in which we operate.”

image source: Equinix