Equinix Issues SGD 500M Green Bonds for Sustainability

Equinix has created history by becoming the first-ever U.S. corporate player in more than five years to venture into Singapore's bond market, issuing SGD 500 million of green bonds successfully. It is the firm's first bond issuance in Singapore and reflects its dedication to sustainable infrastructure and energy efficiency. The bonds, which are 3.50% senior notes due in 2030, were closed on March 13, 2025. Equinix's total global green bond issuances now total about USD 7.3 billion with this issuance.

The bond proceeds will be used to finance or refinance projects that support Equinix's sustainability objectives. These are projects on renewable energy, resource efficiency, sustainable infrastructure, and decarbonization. With the increasing demand for artificial intelligence (AI) and digital services, the company plans to implement energy-efficient solutions in its data centers, complementing its Future First sustainability strategy.

Yee May Leong, Managing Director of Equinix Singapore, emphasized the importance of sustainability in the rapidly evolving digital landscape. “As AI adoption accelerates, advancing energy efficiency and integrating the latest sustainability innovations at our data centers becomes increasingly critical,” she said. “The issuance of our inaugural green bonds in Singapore underscores our commitment to designing and building energy-efficient infrastructure and reducing our carbon footprint.”

This move is also consistent with Singapore's National AI Strategy and the Green Plan 2030, which seek to drive environmental stewardship and technological innovation. Equinix has already proven its commitment to sustainability in initiatives like its SG5 facility, which reflects innovative sustainable design. The facility boasts an industry-leading Power Usage Effectiveness (PUE) of 1.32 for the Asia-Pacific region and consumes Singapore's NEWater, a reclaimed water supply. The SG5 data center has also been certified with the coveted BCA-IMDA Green Mark Platinum, which speaks volumes about its energy efficiency and reduced environmental impact.

Aside from its green infrastructure initiatives, Equinix has also been recognized for its climate leadership and transparency. In 2024, it has been ranked at the top of CDP's Climate Change A List rating, further solidifying its position as a pioneer of sustainable business operations.

The issuance of the green bond was supported by a number of prominent financial institutions. DBS Bank and Standard Chartered also served as Joint Global Coordinators and Lead Managers, whereas HSBC and OCBC were the Joint Lead Managers. DBS Bank also played the role of the sole Green Bond Structuring Agent. The participation of these prominent financial institutions under one's belt supports the increasing significance of sustainable investments in the capital markets.

DBS Bank's Clifford Lee, DBS Bank Global Head of Investment Banking, said the growing demand for digital solutions and the imperative of sustainable infrastructure in addressing such demand. "As demand for digital solutions such as e-commerce and artificial intelligence is set to grow, developing efficient and innovative data centers will be key in facilitating a sustainable future," he added. "This issuance further highlights the pivotal role that capital markets can play in driving towards a greener digital economy."

Maria-Lisa Farmakidis, Executive Director at Standard Chartered, also shared the same view, stressing the importance of Equinix's foray into the Singapore dollar bond market. "With our extensive investor reach in Asia, we were delighted to facilitate Equinix in securing this milestone transaction," she stated. "This successful debut offering not only puts Equinix on the map in the Singapore dollar bond market but also sets the stage for subsequent issuances."

Equinix's push into Singapore's bond market is part of a wider trend for corporations to use green financing to support sustainability efforts. With digital transformation now speeding up the world, businesses are waking up to the need to reconcile technology advancements with ecological responsibility. By investing in efficient energy infrastructure and green technologies, Equinix is emerging as a pioneer in sustainable digital transformation.

With its robust history of sustainability and unambiguous pledge to lower its carbon footprint, Equinix's green bond issue provides an example for other businesses to embrace environmentally friendly funding mechanisms. The firm's ongoing efforts, as well as endorsement from financial institutions and regulatory regimes, will certainly pave the way towards a more sustainable future for data center operations in Singapore and beyond.