Equinix at KeyBanc Forum: Expanding XScale Horizons

On Monday, 11 August 2025, Equinix (NASDAQ:EQIX) presented at the KeyBanc Capital Markets Technology Leadership Forum. The company highlighted its strategic expansion into the XScale business, emphasizing both opportunities and challenges. While Equinix continues to see robust demand from hyperscalers, the complexities of data center operations remain a significant hurdle.

Key Takeaways

• Equinix is expanding its XScale business to accommodate hyperscale customers with larger wholesale spaces.
• The company is involved in joint ventures with GIC, PGIM, and CPPIB, holding a 20-25% interest.
• Equinix is developing multi-100 megawatt campuses, including a 240 megawatt site in Atlanta, Georgia.
• XScale offers capital efficiency and attractive returns through leverage and fee income.
• Equinix is actively managing a $600 million inventory of critical equipment to support its supply chain.

XScale Overview and Strategy

• XScale was established eight years ago to serve hyperscale customers needing larger footprints.
• Equinix controls over 35% of global cloud on-ramps, positioning it as a key player in interconnectivity.
• The XScale business model focuses on capital efficiency, offering attractive returns through joint ventures.
• Equinix is planning additional campuses in the Americas, aiming for several multi-100 megawatt facilities.

XScale Development and Design

• XScale 2.0 campuses will support deployments of over 30 megawatts, unlike the smaller XScale 1.0 projects.
• Construction of the Atlanta campus is underway, with land leveling in progress.
• Equinix prioritizes top markets for latency and interconnection needs, with construction timelines of 18 to 24 months.

Monetization and Financial Aspects

• Equinix earns recurring revenue from customer leases and fees for design, construction, and operation.
• Non-recurring fees contribute 1% to 2% of annual revenues.
• Profitability from joint ventures is expected as assets stabilize, with potential for additional gains upon liquidation of partner stakes.

Competition and Market Dynamics

• Building and operating data centers require significant capital, with a gigawatt needing $10 billion.
• Demand from hyperscalers could exceed Equinix’s current capacity, highlighting the need for expansion.
• Equinix’s experience and scale are crucial in maintaining vendor relationships and managing supply chain challenges.

Synergies between Retail and XScale

• Equinix combines XScale, retail, and interconnection services to meet diverse customer needs.
• Proximity of XScale campuses to retail facilities enables cross-selling opportunities.

Power Supply and Sustainability

• Equinix employs a diverse power strategy, including grid connections and on-site generation.
• The company seeks to use green energy sources and is exploring innovative solutions like nuclear and new startups.

In conclusion, Equinix’s presentation at the KeyBanc Forum underscores its commitment to expanding XScale while navigating industry challenges. For a detailed account, please refer to the full transcript below.

Full transcript - KeyBanc Capital Markets Technology Leadership Forum:

Brandon Nispel, Analyst, KeyBank: Good afternoon everybody my name is Brandon Nispel I cover data centers and tower REITs for KeyBank. Thank you for coming to the KeyBank Technology Leadership Forum. This is a twenty five minute fireside chat. We have Equinix with us Tiffany O’Shaiz, Managing Director of XScale and Chip Newcomb, Head of Investor Relations. Thank you both for being here.

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, thanks for having us.

Chip Newcomb, Head of Investor Relations, Equinix: Thanks for having us. Well, I’ll do our quick disclaimer for everyone here and online. Some of the things we’re going to say today are forward looking in nature. Please see our SEC disclosures for any risks and uncertainties. So, that out of the way, now we can actually talk to the fun stuff.

Brandon Nispel, Analyst, KeyBank: Great. Tiffany, I want to start with you. Managing Director of XScale, sort of a new business for Equinix. Maybe level set us. What’s your background and what is XScale?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. So, my background, I’ve been at Equinix now for nine years and I actually came from our retail colocation business first. So, that know Equinix know that we have a couple of decade and a half history in global colocation services where we have data centers all around the world. And then, call it eight years ago or so, our largest, most strategic customers asked us to enter more of a wholesale space because they wanted to be able to for us to provide them much larger footprints. And that was the inception of XScale.

So, on the retail side, I think lots of customers, you know, we have 10,000 customers, so lots of customers all occupying or co locating in the same building. Think on the XScale side, much fewer in number of customers and much bigger footprints.

Brandon Nispel, Analyst, KeyBank: What was attractive about sort of expanding into maybe more of the hyperscale customers that you couldn’t address previously?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. I mean, the great part is that we were addressing those hyperscaler customers mostly from their network nodes. So Equinix has more than 35% of the global cloud on ramps. So the hyperscalers were looking to Equinix to put in all those interconnectivity devices, but hadn’t been able to yet put their core nodes with us. And that’s why we entered XScale about eight years ago, in EMEA and in Asia in particular.

Chip Newcomb, Head of Investor Relations, Equinix: And I’d add to part of why we the genesis behind XScale was also about capital efficiency. And so the fact that within our retail business, you know, we’re targeting yields in roughly the 25% cash on cash zip code. XScale is different, but then when you add on leverage plus the fee income that we get, it becomes a very attractive return for us and also in a capital efficient manner.

Brandon Nispel, Analyst, KeyBank: Can you unpack sort of like where you stand today from an XScale standpoint? I know a lot of these assets sit in sort of a JV structure. Maybe help us understand what all of those JVs look like today.

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. So we have handful over a handful of JVs operating today with capital partners current capital partners of GIC, PGIM, and now our newest CPPIB, Where Equinix comes in with a 20 to 25% interest in the venture as a limited partner. And then, one of those other capitals partners brings in the remainder of it. So, as a 20 to 25% LP, you know, we have equity investment and interest in it. And then, the joint venture itself hires Equinix to then go run the venture, construct and operate and lease the actual asset as well.

Brandon Nispel, Analyst, KeyBank: And you’ve done different JVs, sometimes with the same JV partner. How do you look at sort of identifying different JV partners? Like, what makes a good partner to you?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Well, I think it’s like minded companies who want long term investments and want to help promote more digital infrastructure growth. That’s what we’ve looked for historically.

Brandon Nispel, Analyst, KeyBank: Okay. Any consideration of moving beyond sort of like just getting capital partners and more strategic partners? Or do you view them as more strategic partners? Because you guys do a lot of the operations, right?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. We do a lot of the operations, but they’re also strategic partners. I mean, they’re putting our trust. Their trust in us. Putting multibillions of dollars of capital to work, they trust Equinix to go, you know, run these data centers appropriately.

So they’re still very strategic for us.

Brandon Nispel, Analyst, KeyBank: Okay. Let’s talk about some of the developments around JVs and XScale. I think up until late last year, primarily focused on XScale outside of The US. Late last year, you announced a $15,000,000,000 XScale JV in The US. Where are you with that?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. So, we’re actively now we’ve announced one piece of land that we’ve closed on in Hampton, Georgia. We’re actively looking at other campuses as well. But the ambition is to have a handful of multi 100 megawatt campuses across the Americas region.

Brandon Nispel, Analyst, KeyBank: Okay, multi 100 megawatts. And, you know, how did you take sort of learnings from XScale one point zero and bring it into XScale two point zero into The Americas?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Well, given that one point zero is, call it, eight years old, the densities and the size of the deployments were a bit smaller than where we are today. XScale two point zero, as I mentioned, are going be multi 100 megawatt campuses, and customers will be buying them and call it 30 plus megawatt deployments. Wherein one point zero, customers have the ability to go down to a couple, five, ten, 15 megawatt deployments.

Brandon Nispel, Analyst, KeyBank: And when you develop 100 megawatt facility, it one customer that’s taking down that whole facility? Is it multiple customers? How do you sort of think about like pre leasing some of those new facilities?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, it could be either. It could be one customer could take down an entire campus or it could be that we end up with, you know, a multitude of customers.

Brandon Nispel, Analyst, KeyBank: And you’ve announced Atlanta, I think, as sort of your first campus.

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Where are you

Brandon Nispel, Analyst, KeyBank: in terms of construction around that campus?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, we’re moving a lot of dirt around right now, is what I would say. You know, it’s several 100 acres where we’re leveling and flattening the land today. We have bulldozers pushing dirt every day and getting it pad ready.

Brandon Nispel, Analyst, KeyBank: And power is committed to the pad?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: And power, we’ve been working with CEGMC, who’s the regional utility that we’re working with.

Brandon Nispel, Analyst, KeyBank: How do you think about sort of the development of other facilities across The U. S? Where does the land come from? Do you already have it in land bank and you’re sort of trying to identify either, you know, the power and get all the permitting and zoning constructed? But where where are you sort of on the other JVs?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. Across all of our ventures, it’s been a combination of either taking what we already had in land bank and contributing it into the venture to develop, or it’s going out and actively pursuing new parcels of land and then securing power for that. So we have both of those across all of the ventures.

Brandon Nispel, Analyst, KeyBank: And do you think about X scale in The US is sort of like sticking to top markets? I know we’ve seen some deals with, you know, Bitcoin miners, right, that are doing 250 megawatt deals in the middle of North Dakota. What’s the value of sticking to the top 10 markets versus maybe moving beyond that?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Well, way we think about it is generationally. You know, we’ve already got a twenty seven year operational history at Equinix and we plan to continue to be in this space for decades to come. So we’re not thinking about meeting one trend in a moment in time. We’re thinking about durability and creating a platform that can capture multiple trends over time. So if we think about that, A, we want durability.

B, is we have a flexible data center design that could capture AI training, AI inferencing, cloud or enterprise kinds of workloads. And if you’re going to capture all of those workloads, you need to think about latency as well. So those top metros are still important to us. It doesn’t mean we have to be in Downtown Atlanta, like you’re seeing play out here with this campus. We’re about 40 miles away.

But we’re still staying very close to those metro centers because the interconnection back into Equinix is also really important for the success of XScale.

Brandon Nispel, Analyst, KeyBank: And Equinix has historically contributed assets into these JVs. What needs to happen to these assets that were probably traditional retail or enterprise facilities to turn them into an X scale property?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, for those that we did historically, it was about having the right amount of capacity and the right kind of data hall that could be accommodated into a customer who needs that kind of space. Going forward, it’ll be a lot more about selecting the right kind of land that we would be able to develop on.

Brandon Nispel, Analyst, KeyBank: Okay.

Chip Newcomb, Head of Investor Relations, Equinix: Yeah. And I’d add, historically, the reason why we were contributing assets in as well is that we didn’t want to slow down our momentum, right? And so even as we think about what we’re doing right now, we would much rather go out, get started to be developing on our own balance sheet like we are right now where we said at our most recent earnings call, we’re spending about $450,000,000 or we expect to this year on balance sheet for X scale but it’s because we see the opportunity in the market and we want to keep developing, recognizing at some point we will move that into a JV and then get paid back for our spend.

Brandon Nispel, Analyst, KeyBank: And a lot of the is the development around hyperscale, is it more spec or do you have like an anchor tenant already sort of in mind for a facility?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, we end up with both. We end up with both. We end up in a lot of instances where we do have an anchor tenant that has a start development. But we also have learned you know, having done this now for eight years that the closer that you are to a customer needing a service, the more important it is that you have it available on time. And many times, the price point is also increased at that point.

So, you know, we do both.

Brandon Nispel, Analyst, KeyBank: As you’ve learned from sort of XScale one point zero and moved to two point zero, I would assume some of the designs and architectures of the buildings that you’re constructing have changed. Can you help us understand, like, how you’re designing the buildings today for the Americas JV, versus what you might have done a couple years ago? And maybe specifically focusing on like liquid cooling, power densities, and just like overall resiliency of the facility.

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah. I mean, you’ve nailed on the things that are mattering most right now. So, having such a long history with the hyperscalers and some of the other strategic SaaS operators that need this kind of capacity, we’ve been working with them for years on what their designs are going to look like. We do very regular design reviews. And we also go work with all the equipment manufacturers, like Nvidia and Dell and HPE and others.

So, you know, we know about when technology infrastructure is going to converge. Liquid cooling is certainly one of the big aspects of the design that’s different right now. In that, in the new XScale two point zero data centers across The Americas, they’re coming up right away, day one, of having the ability to be air cooled in a narrow amount and liquid in a larger amount or the exact inverse of that, depending on where these customers are in their journey in transition to liquid cooling. And then, certainly, density as well. There’s a great deal of flexibility from what we used to see in the, call it, you know, 10 kilowatts per cabinet for these kinds of deployments all the way up to, call it, more than a megawatt per cabinet.

Brandon Nispel, Analyst, KeyBank: And what do you think of, like, construction timelines? Let’s talk about maybe Atlanta facility, but then establishing other facilities down the road.

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, think, first, it’s about getting it pad ready. Know, that’s a big part of the long component of construction, is getting it ready for the first building. But then, after that, you’d see the construction timeline accelerate because you’ve done a lot of the upfront work that’s required. So, think like eighteen to twenty four months to get it pad ready and have the first building constructed. But then, after that, you’d be able to see something pretty quickly.

Brandon Nispel, Analyst, KeyBank: Okay. Let’s move on. How do you monetize XScale? I think that’s one thing that I don’t fully understand. What’s sort of the monetization strategy of sort of the XScale buildings that you’re constructing?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: I mean, are two ways to think about that. One is, when it’s actually leased and a customer is in it and occupying it, the customer is paying for the service. That’s one way you would monetize it.

Brandon Nispel, Analyst, KeyBank: Then that’s like a recurring revenue stream.

Tiffany O’Shaiz, Managing Director of XScale, Equinix: That’s right. Exactly. We’re an equity provider. So, it is unconsolidated revenue due to the, you know, 20 to 25% share we have. So, that flows through in kind of another category for us on the equity side.

I’m going to let Chip, who’s the smart one, share everything that I didn’t get right. The second area, as I mentioned before, is that the venture hires Equinix to design the data center, to construct the data center, to operate the data center, to manage the JV, and then to lease it. So there are fee structures that come in from the venture as well. Some are non recurring and some are monthly recurring.

Chip Newcomb, Head of Investor Relations, Equinix: Yeah. So in terms of right now, largely what you’re seeing flow through our P and L, we get the recurring revenue fees for the fact that we’re, you know, the books and record keeper. It’s all of our all of our employees who are actually running the data centers themselves. And so that’s a small but growing portion of our recurring revenues. And then the bigger, lumpier part is going to be the nonrecurring fees.

So it’s going to be those design and construction fees, the sales and marketing fees as we actually lease the facilities. And so right now historically the total fee streams we’ve been getting has been somewhere in the zip code between one to 2% of revenues in a given year. That will ebb and flow depending primarily on the leasing volumes that we’re doing. But then the other part, as Tiffany mentioned, is as we then start stabilizing the assets then you’ll start seeing the profitability flowing through sort of below the line as the profits from joint ventures. The last element is as we think about liquidity at some point, there then is also the opportunity for a promote.

Nothing that we’ve done as of yet since we haven’t monetized or our partners haven’t monetized any of the assets thus far, but that is something that, you know, will be an opportunity as we look to more as our partners look to monetize in the future.

Brandon Nispel, Analyst, KeyBank: When we think about sort of the long term monetization, you guys updated us in terms of guidance from an X scale perspective. Does that include the Americas JV? And how should we think about the Americas JV specifically towards that sort of revenue AFFO contribution?

Chip Newcomb, Head of Investor Relations, Equinix: So in terms of the guidance that we provided at our Analyst Day in late June, that incorporated our assumptions around our Hampton campus, but we hadn’t included any of the assumptions as of yet around incremental land plots that will eventually push into the joint ventures.

Brandon Nispel, Analyst, KeyBank: Okay. What would you say that Atlanta campus is of the sort of bigger picture JV in The US?

Chip Newcomb, Head of Investor Relations, Equinix: It’s a two forty megawatt campus and if you figure, you know, the JV itself is going to be about $15,000,000,000 and it costs somewhere between right now 10,000,000 to $12,000,000 a megawatt to build, yeah, that’s something less than a quarter in terms of the potential total build out of the joint venture.

Brandon Nispel, Analyst, KeyBank: And then when you say promote, that’s somebody else coming and taking an ownership stake in the assets.

Chip Newcomb, Head of Investor Relations, Equinix: Yeah, that would be our LPs going and selling off their portion or their stake in the joint venture and depending on the return profile that they get we can potentially get a promote on that.

Brandon Nispel, Analyst, KeyBank: Got it. Can we talk about competition? It seems like everybody’s building data centers these days. How do you think about sort of the competitive landscape for building and developing some of these type of assets?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Well, look, anyone who’s been in this space for a while knows building and constructing and operating a data center is hard business. It’s a really hard thing to do. And we’ve got a long track record of being able to do this. Other folks might be entering it for one specific purpose. We are in the data center space for a multitude of purposes.

We have 10,000 customers, as I mentioned, across all of the Equinix portfolio. So, we don’t get too distracted about that. I love the term that you share, though. I’m going to ask you to do it here.

Chip Newcomb, Head of Investor Relations, Equinix: Yeah. Mean, part of what we’re seeing in the marketplace, too and we’ve joked about this internally, but there is an element of bragawatts right now in terms of everyone saying, Well, I’m going to build a gigawatt and I’m going build a five gigawatts. The simple fact is that as you think about a gigawatt, again, if you’re building at 10,000,000 a megawatt, that’s $10,000,000,000 of capital that you have to put to work. And so what we’re seeing even with, you know, some of the hyperscalers now going out and potentially thinking about monetizing part of their facilities or bringing in joint venture partners is that’s a lot of money running after that. And not only do you have to have a lot of capital to build data centers, but you also then have to have power.

You have to have all of the mechanical and electrical to do that. And so to Tiffany’s point, we’ve got a very long track record and we’re working not only about thinking about securing power for our X scale but for retail, but we’re also then going out and working with the critical component manufacturers so that we’re not going to have to be waiting for a generator, for a crack unit, for a static transfer switch. We’ve already got roughly $600,000,000 worth of that MEP warehoused on our balance sheet. And the beauty of the combination of our industry leading retail business plus XScale is it gives us that much more relevance to all of our vendors where we can very confidently say, hey, we’re a, you know, BBB plus tenant credit. We can go and sign on the dotted line and say we’re going to be good for it and then put all of that equipment to its highest and best uses whether that be for retail or for X scale.

Brandon Nispel, Analyst, KeyBank: Well, if we just were to take a step back, how do you sort of look at that overall competitive dynamic? Because you got private equity money, you got self build, right? There’s all these nontraditional data centers like the Bitcoin miners. How do you take a step back and, like, frame the overall size of that opportunity for us? And then maybe another way to phrase it is like where are we on the AI build out?

Chip Newcomb, Head of Investor Relations, Equinix: Well maybe one way to think about that is this. So if we took all of the capacity that Equinix is building right now across both retail and x scale, if we offered that up to one hyperscaler, just one, not the twelve, fifteen odd hyperscalers plus the long tail of SaaS vendors, that still wouldn’t satiate their needs for a single year. That’s how much demand there is out there in the market. So there is very much a rising tide lifts all boats. Now I think the important part for us to what Tiffany was talking about earlier is we’re looking to build generational assets that are going be operating for the next thirty plus years.

And so we’re not necessarily going to look to build just for any old operator in any old part of the world. We’re thinking about what is going to be the durability of these assets and how can we offer a differentiated type of offering and service for our customers. So I’d say that’s what I would, again, long winded way of saying huge amount of opportunity out there right now, but we’re going be highly focused in terms of how we want to pursue that opportunity. Got it. Anything else you’d add?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: No. Great.

Brandon Nispel, Analyst, KeyBank: Tiffany, wanted to ask you because you came from the retail side of the world. Now, you’re in the XScale side of the world. How do you sort of go about creating synergies between the two businesses? How do you sort of see them fitting together?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Yeah, look, every customer we have, hyperscale down to enterprise, SaaS operators, they all have distributed architectures. They all have a different need, a different workload need, or application, or use case need for what they’re trying to solve. And now, when you have xScale plus retail plus our interconnection business, we can take these really complicated distributed networks and make them very easy for customers. I mean, that’s the value that Equinix provides with having retail up to xScale.

Brandon Nispel, Analyst, KeyBank: Is there like a pull, like, so for example, if you’re going to develop at the Atlanta Hyperscale facility, is there a pull towards more enterprise in that in sort of your retail business in that facility? It’s probably not enough data to see that, but would you expect that to be something that happens?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: You know, I expect in our XScale campus that we will have interest from hyperscale kinds of customers, SaaS operators, as well as large enterprise organizations. I expect that we’ll see demand from each of those segments.

Chip Newcomb, Head of Investor Relations, Equinix: And you’ve actually seen historically we’ve built both together. So as you look at what we’ve done in Europe, whether it’s in a Frankfurt or in a Paris or in a Dublin, generally speaking our X scale campus will be either in relative proximity or in some cases directly next to our retail facilities. And so that gives us the ability to again operate across both sides of the coin.

Brandon Nispel, Analyst, KeyBank: Got it. We have a few minutes left. I’d ask the audience for questions if

Unidentified speaker: Go back to the power supply. How much of a gating factor are utilities going forward here? We talked about grid modernization. Utilities can’t get gas turbines for a couple of years from GE Vernova. So how do you guys get the power, Right?

Does that smooth the cycle out? Because it seems like there’s a lot of supply going in, as Brandon said, a lot of demand. But does the power supply become a gating factor? And how much does it push things to the

Chip Newcomb, Head of Investor Relations, Equinix: right when you’re building? Do want to start

Tiffany O’Shaiz, Managing Director of XScale, Equinix: with that? Yeah. I would start with you know, power is certainly a challenge right now. One is, we operate in different jurisdictions. So supply is different in each jurisdiction, is one thing I would say.

In those that certainly have challenges, we have an all of the above kind of strategy to power. So take what we can from the grid. We’re also doing some on-site power generation as well. We have a turbine in Dublin. We have fuel cells, you know, in some of our locations.

So we’re looking at different power options depending on where we are. And in some instances, you know, we might need to do our own on-site power generation to bridge what the utility is able to provide us.

Chip Newcomb, Head of Investor Relations, Equinix: Yeah. And I’d add to part of even as we think about some of our sustainability efforts, being that bridge we can also then be helping as some of the grids are transitioning. So case in point in Dublin where some of our ex scale facilities are running on gas turbines. Well, at some point we do want to connect into the grid but as they’re trying to transition to more renewables in the Irish grid, we can then become a swing demand provider so that if the wind’s not blowing or the sun’s not shining, we’ll then turn on our turbines or back and forth. So we’re thinking holistically not just about, you know, own position but also how do we fit within the broader grid.

Brandon Nispel, Analyst, KeyBank: Other questions. Do you have a preferred sort of alternative power? Do you use nuclear? You mentioned nat gas, wind and solar. Is there a preferred sort of alternative power besides grid power?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: I think the best power you can get are green electrons. And the best way you could get that is right from the grid. That would be the first choice. And then, as you start to move down, it’s how much renewable energy can you get, and where or not even necessarily renewable, but clean energy, because you mentioned nuclear. Like, we’ll take whatever clean energy we can get.

That would be the first choice. And then, after that, it’s taking whatever energy you can get from the grid that isn’t necessarily clean and then using things like PPA, you know, where we have PPAs all around the world to help as well.

Chip Newcomb, Head of Investor Relations, Equinix: And as you can appreciate, too, we’re talking to just about anyone and everyone. And so whether we’re thinking about traditional energy sources or even some of the new startups out there, you know, someone like Inokla where we have been working with them. We actually have a reservation for one of their first generators whenever that gets up and running on an SMR side of things. And so we’re taking really an all of the above approach.

Brandon Nispel, Analyst, KeyBank: Got it. Yes, question?

Tiffany O’Shaiz, Managing Director of XScale, Equinix: Well, what we look at is the time horizon. Typically, isn’t available for a period of time. So, it really depends on for what horizon are we buying it. There are plenty of instances where we have a very vast land bank at Equinix, and many of that will buy land knowing that power is going to come in three, five, or eight years, which is perfectly acceptable as well.

Chip Newcomb, Head of Investor Relations, Equinix: Yeah, I’d add too, there are differences between what we might be doing on X scale relative to what we’re doing in retail. Because in retail you might put up a single building and that’ll give you capacity for two to three years in some cases. Relative to an X scale, if you’re signing an entire building up with a single customer, then you’re sold and you need to move on to the next opportunity in terms of power. Also, you know, the consumption, if you’re doing a 30 megawatt bill or 30 megawatt phase and you do two phases, well, very quickly consume that capacity. So it’ll vary depending on X scale versus retail.

Brandon Nispel, Analyst, KeyBank: Just to finish out, in closing, I suppose you have a number of JVs in place, you’re expanding them rapidly. How do you sort of help investors understand what XScale means to Equinix over the next five years? Like what’s the opportunity?

Chip Newcomb, Head of Investor Relations, Equinix: Well I think first and foremost as we talked at our Analyst Day, XScale is a huge growth opportunity for us and really what we’re doing in terms of the context of Build Bolder is investing across the entire continuum of digital infrastructure, recognizing that we will have customers who need to have a single cabinet in a shared cage environment like our Secure Cab Express product all the way up to X scale where we’re going to be selling thirty, sixty megawatts, even in some cases potentially entire campuses. And so there really is this broad market opportunity for digital infrastructure. But as it relates to X scale, Tiffany, anything you’d add?

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