Good afternoon, and welcome to the Equinix second quarter earnings conference call. All lines will be able to listen only until we open for questions. Also, today's conference is being recorded. If anyone has objections, please disconnect at this time. I would now like to turn the call over to Chip Newcom, Director of Investor Relations. You may begin. Good afternoon, and welcome to today's conference call. Before we get started, I would like to remind everyone that some of the statements we will be making today are forward-looking in nature and involve risks and uncertainties. Actual results may vary significantly from those statements and may be affected by the risks we've identified in today's press release and those identified in our filings with the SEC, including our most recent Form 10-K filed February 18, 2022, and Form 10-Q filed April 29, 2022. Equinix assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. In addition, in light of Regulation Fair Disclosure, it is Equinix's policy to not comment on financial guidance during the quarter unless it is done through an explicit public disclosure. In addition, we will provide non-GAAP measures on today's conference call. We provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why the company uses these measures in today's press release on the Equinix Investor Relations page at www.equinix.com. We have made available on the IR page of our website a presentation designed to accompany this discussion, along with certain supplemental financial information and other data. We would also like to remind you we post important information about Equinix on the IR page from time to time and encourage you to check our website regularly for the most current available information. With us today are Charles Meyers, Equinix's CEO and President, and Keith Taylor, Chief Financial Officer. Following our prepared remarks, we'll be taking questions from sell side analysts. In the interest of wrapping the call up in one hour, we would like to ask these analysts to limit any follow-on questions to one. At this time, I'll turn the call over to Charles. Thank you, Chip. Good afternoon, and welcome to our second quarter earnings call. On the heels of a record Q1, we had an outstanding Q2 with strong and sustained demand across our product portfolio, broad pricing momentum, and solid sales execution, with particular strength in Americas and EMEA, resulting in record gross and net bookings and our best ever quarterly revenue step-up. As our customers progress and accelerate their digital transformation journeys, the relevance of Platform Equinix continues to grow. In our recent Global Tech Trends Survey, nearly 70% of the 2,900 IT decision-makers polled indicated their intention to adopt private or hybrid as their cloud architecture of choice, with over 45% of those polled working with three or more cloud providers, and over 80% indicating their intention to sustain or increase their spend on interconnection. Today, we're seeing this demand for interconnected digital infrastructure across our regions. This quarter's bookings sizably surpassed the prior peak, a great indicator of the strength of the business and our go-forward pipeline. Our business remains resilient and highly diversified, with nearly a third of our 10,000-plus customers closing incremental business in any given quarter. Despite macro conditions, this customer demand, paired with lower than expected churn, is driving us above the upper end of our Analyst Day revenue guidance this year and benefiting our AFFO per share guide with the impact of pricing increases still largely unrealized. Turning to our results as depicted on slide 3, revenues for Q2 were $1.8 billion, up 10% over the same quarter last year, representing our 78th consecutive quarter of top line revenue growth, a clear reflection of the durability of our business model across economic cycles. Adjusted EBITDA was up 8% year-over-year, with AFFO meaningfully ahead of our expectations due to continued strong operating performance. Interconnection revenues continue to outpace the broader business, growing 13% year-over-year. These growth rates are all on a normalized and constant currency basis. Customers continue to embrace Equinix as the best manifestation of the interconnected digital edge, and we continue to scale, extend, and innovate across our data center services portfolio. We now have 49 major projects underway across 34 metros in 21 countries, with 13 new projects this quarter, including new data center builds in Dublin, Montreal, New York, Paris, Warsaw, and our first build in Chennai, India, the first of several anticipated metro expansions in this fast-growing market. Our unparalleled global scale and reach continues to be a strategic advantage, driving success with service providers looking to extend their reach and rapidly implement as-a-service models, and with enterprise customers across nearly every sector of the global economy as they modernize their infrastructure and embrace hybrid and multi-cloud. Wins this quarter included a multinational energy conglomerate implementing their hybrid cloud strategy across multiple regions, leveraging Network Edge and Equinix Fabric. F5, a global technology leader in application security and multi-cloud networking, establishing additional networking nodes in all three regions to better support their customers. In May, we closed our acquisition of four data centers from Entel, extending Platform Equinix into Chile and bringing our global footprint to 70 metros across 31 countries. Equinix has a decade-long history in Latin America, and this acquisition provides significant expansion capacity, enabling both local businesses and multinationals the opportunity to accelerate their digital transformation and their LatAm aspirations. We also expect to close on the acquisition of one additional data center from Entel, extending our reach to Lima, Peru in Q3. As the world's digital infrastructure company, we believe it's our responsibility to help bring about a more sustainable future. In 2022, we continue to advance our bold future-first sustainability strategy and are pleased to have been recognized by Sustainalytics as among the best large cap REITs for ESG, and to be ranked seventh on the U.S. EPA's National Top 100 list of the largest green power users. We continue to accelerate the transition to cleaner energy grids and recently executed our second virtual power purchase agreement in Finland. Once operational, these two new wind projects, combined with our prior projects, will bring Equinix's total renewable VPPA capacity to 300 megawatts, and we continue to explore additional PPA projects across all three regions as we progress towards our goal of 100% clean and renewable energy. Turning to our industry-leading interconnection franchise, we're seeing continued diversification of our ecosystems and robust activity, including a win with Fast Shop, one of Brazil's largest electronics retailers, who chose Equinix to help strengthen interconnection for its digital core, improve cloud connectivity, and integrate with the digital retail ecosystem. In Q2, we added an incremental 7,600 interconnections and now have over 435,000 total interconnections on our platform. Equinix Fabric saw a notable increase in provision capacity as channel enablement is driving network resale use cases, and customers are increasingly using intermetro connections on Fabric to connect across their deployments, including a win with Spatie, a cybersecurity company in the Netherlands using Equinix Fabric to connect deployments in Amsterdam and London to provide connectivity for its customers as part of its business expansion. Internet exchange saw peak traffic up 4% quarter-over-quarter and 25% year-over-year to greater than 25 Tbps. Pivoting to our digital services portfolio, we continue to see strong growth and significant opportunity as customers increasingly leverage more virtual as a service and edge solutions. Equinix Metal had a strong bookings quarter as partner-driven solutions like Pure Storage and Dell PowerStore on Equinix Metal are driving performance-centric hybrid cloud opportunities with enterprise customers. Network Edge also had a strong quarter, with a notable increase in large multi-instance deployments from enterprise customers. Both Metal and Network Edge are also driving attractive revenue pull-through to Equinix Fabric. Digital Services wins this quarter included Protocol Labs, an open-source R&D lab, increasing its usage of Equinix Metal to support projects that decentralize the web and cloud storage, and a leading waste management services provider leveraging Fortinet on Network Edge to connect their business units in Asia to their data centers in the U.S. across Equinix Fabric. Our strategy remains simple. To translate our unique and durable advantages into being the platform where buyers and sellers of digital services can come together, enabling them to deploy and interconnect the inter-infrastructure that they need to transform their business. For service providers, demand remains robust as businesses around the world are planning major investments in digital technologies to support ambitious expansion plans following lessons learned from the pandemic. This year, Gartner projects that global spending on public cloud services will reach nearly $500 billion, and we're seeing strong demand across multiple vectors with these key cloud and IT customers. In the quarter, we added 3 new cloud on-ramps in Paris and London, and now have nearly 200 on-ramps to the major cloud service providers deployed on our platform, making Equinix the home of hybrid multi-cloud. We also continue to see tremendous success supporting our hyperscale partners as they invest in subsea cables to facilitate the rapid growth of internet traffic between continents In addition to being an integral part of hyperscale architectures, we continue to drive go-to-market alignment with these market-shaping players, partnering to meet end customer needs for hybrid cloud and making the hyperscalers some of our most productive channel partners. Hyperscaler demand for our xScale offering also remains robust. We had high leasing activity in Q2, pre-leasing our entire Dublin Six asset, the first phase of our Paris Thirteen asset, and the second phase of our Frankfurt Eleven asset, representing more than 38 megawatts of capacity. Looking across the various xScale JVs, we've seen strong demand with over 170 megawatts now leased across our portfolio. We currently have 11 xScale builds under development, of which more than 80% is pre-leased. On the enterprise side, Gartner also continues to view digital transformation not as a 1 or 2-year trend, but as a systemic and long-term theme. Our pipeline strongly supports this thesis, and our enterprise activity this quarter was robust, with Americas and EMEA regions driving record bookings with particular strength in banking and healthcare. Expansions included a leading U.S. healthcare software vendor creating an edge hosting environment on the West Coast, and the Hertz Corporation, one of the largest worldwide vehicle rental companies, who deployed on Platform Equinix to support its digital transformation journey, locating infrastructure proximate to cloud providers and tapping into our digital solutions. Once again, our channel program continued to thrive, delivering its fifth consecutive quarter of record bookings, including strong performances for our EMEA and APAC regions, accounting for more than 35% of bookings and nearly 60% of new logos. Wins were across a wide range of industry verticals and digital-first use cases with hybrid multi-cloud as the clear architecture of choice. We saw strength from strategic partners like AT&T, Cisco, Dell, Google, and Microsoft, and including a win with Orange Business Services for a security services technology company to deploy their payment card encryption solution while interconnecting to our financial services and cloud ecosystems. We're also proud to have been named HPE GreenLake's Momentum Partner of the Year for 2022, as we together work to deliver a consistent hybrid and multi-cloud experience for our joint customers. Now, let me turn the call over to Keith and cover the results for the quarter. Thanks, Charles, and good afternoon to everyone. I hope you're all doing well and enjoying the summer months. Well, as you can see from our results, Q2 was one of our best quarters to date, if not our best. The go-to-market engine continues to convert our healthy pipeline into record bookings with attractive pricing, coupled with low churn dynamics. In fact, it was our eighth straight quarter of increasing net bookings activity, and our forward-looking pipeline remains robust. Our success and the momentum in the business are strong indications of the value customers place on our highly differentiated ecosystems or the breadth of our service offerings, the global scale and reach of our platform, and of course, the quality of our operational delivery. With a great first half of 2022, we're again raising our underlying guidance across each of our core financial metrics. Now, as you can see from our performance, we continue to manage and instrument the business to perform across varying economic cycles, even ones like we're experiencing today. While all things macro remain within our focus, we do feel well-positioned to address the volatility in the market, and here's why. We have low customer concentration with no customer representing greater than 3% of our revenues. Our top 50 customers continue to diversify across our platform and as a percentage of revenues. With regards to supply chain, our best-in-class design and construction and strategic sourcing teams are delivering projects consistent with our budget expectations with limited delays, and have accessed greater than $300 million of inventory holds to mitigate future disruptions across a number of critical functions. On inflation, we've largely been effective at protecting our customers and partners from the market fluctuations. As we continue to assess the likely go-forward trends related to the cost of energy and construction, in addition to the broader inflationary increases affecting wages and other operating costs, we do expect to raise our prices. With 60% of our revenues coming from outside the US, a strong dollar in Q2 has had a notable impact on our as-reported numbers and outlook. Yet our sophisticated hedging program has meaningfully dampened the impact to our financial statements. Now, let me cover the highlights for the quarter. All comments in this section are on a normalized and constant currency basis. As depicted on slide 4, global Q2 revenues were $1.817 billion, up 10% over the same quarter last year, and above the top end of our guidance range due to better-than-expected step-up in recurring revenues and strong xScale ANR fees. Global MRR per cabinet yield reached a new mark of $2,000 per cabinet. Q2 revenues, net of our FX hedges, included a $20 million impact when compared to our prior guidance rates due to broad dollar strength. Global Q2 Adjusted EBITDA was $860 million or 47% of revenues, up 8% over the same quarter last year, above the top end of our guidance range due to strong operating performance. Q2 Adjusted EBITDA, net of our FX hedges, included a $10 million FX impact when compared to our prior guidance rates, and $4 million of integration costs. Global Q2 AFFO was $691 million, above our expectations due to strong operating performance and included a $9 million FX impact when compared to our prior guidance rates. Global Q2 MRR churn was 2.1%, again at the lower end of our guidance range. Looking forward, we expect MRR churn to continue to trend favorably and remain at the lower end of our 2%-2.5% per quarter range. Turning to our regional highlights, whose full results are covered on slides 5 through 7. APAC was the fastest-growing region on a year-over-year normalized MRR basis at 14%, followed by the Americas and EMEA regions at 11% and 9% respectively. The Americas region had a record bookings quarter with great performance in our Canadian and Mexican businesses as well as our Denver and Silicon Valley markets and healthy new deal pricing. The Americas' go-to-market engine continues to sell the platform with strong global exports. The Entel Chile assets are performing well against our initial expectations, and we look forward to adding Lima, Peru, to our global footprint in August. Our EMEA region also delivered a record bookings performance with broad-based strength across our cloud, enterprise, content, and digital media verticals led by our London, Paris markets, as well as our emerging markets. In the quarter, we saw healthy retail activity with strong pricing across our varying deal sizes and solid adoption of our digital services products. The integration of the MainOne assets into our platform is progressing well, and the business is tracking ahead of our expectations. We're seeing increased focus on sustainability across our European stakeholders, and thus, we're taking an active leadership role through the European Data Centre Association to address this growing and critical matter. Finally, the Asia Pacific region had a strong quarter with robust channel activity led by our businesses in Australia and Singapore. I'd also like to take this opportunity to thank our Shanghai operations team for their dedication and effort during the very strict COVID lockdowns over the past quarter to deliver 100% uptime. Their efforts are a shining example of what we call the magic of Equinix, as they put we before me to ensure our customers' critical infrastructure remained operational. Now looking at our capital structure, please refer to slide 8. We ended the quarter with cash of approximately $1.9 billion, an increase over the prior quarter, largely due to our April green bond debt offering and strong operating cash flow created by the business, offset by our growth CapEx, the cash dividend, and the acquisitions closed in the quarter. In June, Fitch Ratings upgraded us to BBB+, given the strength of our business performance and its cash-generating capabilities, as well as our balanced capital funding posture. We're very appreciative of the support received from Fitch. Additionally, during the quarter, we executed some ATM for resale transactions, which will provide approximately $400 million of incremental equity funding when settled later this year. Looking forward, as stated previously, we'll continue to take a balanced approach to funding our growth opportunities with both debt and equity while creating long-term value for our shareholders. Turning to slide 9. For the quarter, capital expenditures were approximately $490 million, including a recurring CapEx of $35 million. In the quarter, we opened 4 retail projects in London, Mexico City, Milan, and Tokyo, and 2 xScale projects in Frankfurt and Sydney. We also purchased land for development in Bogotá and Mumbai. Revenues from owned assets stepped up to 61% of our total revenues, reflecting our long-term strategy of both developing and purchasing land and IBXs. Our capital investments deliver strong returns, as shown on slide 10. The 162 stabilized assets increased recurring revenues by 7% year over year on a constant currency basis. These stabilized assets are collectively 87% utilized and generate a 28% cash-on-cash return on the gross PP&E invested. Finally, please refer to slides 11 through 15 for our updated summary of 2022 guidance and bridges. Do note our 2022 guidance now includes the anticipated financial results from the Entel Chile acquisition, which closed in May. For the full year of 2022, based on the momentum we're seeing in the organic business, we now expect our revenues to increase 10%-11% on a normalized and constant currency basis over the prior year, trending above our Analyst Day revenue range, a reflection of the healthy digital infrastructure demands that are driving the momentum in our business. Relative to our prior guidance, we're increasing our revenues by $65 million, including $30 million of revenues from the Entel Chile. We expect 2022 underlying Adjusted EBITDA to increase by a net $33 million compared to our prior guidance, including $18 million from Entel Chile. We now expect to incur $30 million of integration costs in 2022. We're raising our underlying 2022 AFFO by $33 million to grow between 8%-10% on a normalized and constant currency basis. Given the strength in our business, 2022 AFFO per share is now expected to grow between 8%-9% on a normalized and constant currency basis, above the top end of our prior guide, with both the MainOne and Entel acquisitions immediately accretive to our business. 2022 CapEx is now expected to range between $2.3 billion-$2.6 billion, including about $185 million of recurring CapEx and about $110 million of on-balance sheet xScale spend. Let me stop here. I'm going to turn the call back to Charles. Thanks, Keith. In closing, we had an outstanding first half of 2022, and our business continues to deliver strong and consistent results. Despite a challenging macroeconomic and sociopolitical landscape, demand remains robust as customers continue to invest heavily in digital transformation. As infrastructure needs evolve, Platform Equinix is increasingly relevant as a point of nexus in IT architectures that are more distributed, more hybrid, and more cloud-connected, giving us a distinctive value proposition and meaningful pricing flexibility. The emergence of the cloud continues to disrupt the multi-trillion-dollar global IT market, fueling both our hyperscaler relationships and our broader service provider business as successful new entrants extend and expand their infrastructure to drive revenue growth and traditional technology leaders build out distributed delivery infrastructure as they transform to as-a-service models. We continue to invest behind this momentum, both in expanding the reach and scale of our data center platform and in accelerating the evolution of our digital services portfolio, which is seeing strong customer interest. In that vein, we're pleased to welcome Jeetu Patel and Fidelma Russo to our board of directors. As veteran operating leaders at Cisco and HPE, they bring deep knowledge of both technology and go-to-market aspects of the evolving digital infrastructure landscape, and we're excited about their contributions as we continue to innovate our service offerings for the digital leaders of today and tomorrow. Let me stop there and open it up for questions. Thank you. We will now begin the question-and-answer session. Our first question comes from Matthew Niknam with Deutsche Bank. You may go ahead. Hey guys. Congrats on the quarter. Thanks for taking the questions. Just first maybe on bookings. You talked about record quarterly gross and net bookings, Americas and EMEA leading the way. I'm just wondering if you can talk a little bit about how trends evolved over the course of the quarter and whether you've seen any moderation, maybe either late 2Q or early 3Q, just in light of the macro backdrop. One follow-up. Keith, you mentioned the $400 million in ATM equity issuance. I'm just wondering, with leverage under 4 turns, can you talk about the strategic rationale for the issuance and how you're thinking about potential uses? Thanks. Hey, Matt, it's Charles. I'll take the first one and hand it over to Keith for the second one. I would say the trend line on bookings continues to be strong. You know, I think we're seeing you know real commitment from folks relative to digital transformation. I think we're seeing that strength across regions and across sectors, both in the service provider side of our business and the enterprise side of our business. That's literally across virtually every sector, as we said in the script. No moderation. In fact, I would tell you that our pipeline going into Q3 is stronger than it was going into Q2. We've got a lot of forward visibility, and you know really continue to feel very good about the overall demand backdrop for the business. Matt, sort of responding to the second question as it relates to using our ATM. First and foremost is, as you probably heard in the prepared remarks, we've done that on a forward basis, so we haven't pulled down the equity yet. Part of it, our thinking is, look, there's a lot of disruption in the marketplace. One of the things that we know is we're gonna continue to build. As you heard, we announced 49 new projects or we have 49 projects under way. We added 13 new projects this quarter. We're closing on the acquisitions, and we're gonna continue to fund these dividends. As we think a lot about what we need, not only through the rest of this year, but through the end of next year, we want to make sure we bring balance to the market, balance to our capital plans, but also recognize that there was volatility in the marketplace. We basically did a forward sale through a number of transactions at $680 a share over the quarter. We're very selective in our timing, as you can appreciate. You know, we just felt that it was a good thing to add to the overall liquidity position of the business. Let me just also just sort of say one last thing. As you step back and you recognize the momentum in our business and what we said in the prepared remarks, but certainly what Charles has also spoken of, the momentum in our business is substantial, and the investments that we're making in our assets is gonna continue to be substantial. As a result, we want to make sure that we have sufficient liquidity in these periods of great uncertainty. Raising capital at a time when you can is appropriate. Using the cash on our balance sheet, using our equity, and of course, as you can appreciate, we're gonna be looking at some debt structures as well to augment our liquidity position so that we don't have to worry about that next decision, which is what will we do if an opportunity presents itself. Again, it's more about being prudent, having balance, supporting our ratings, and at the same time creating liquidity in the balance sheet for future decisions. That's great. Thank you both. Our next question is from Ari Klein with BMO Capital Markets. You may go ahead. Thanks. Yeah, same-store revenue growth was the best it's been in a while. I think last quarter you mentioned you got a 50 basis points benefit from energy. Is that still the case? Can you talk about the pricing strategy outside of energy? It sounds like you are increasing prices. Can we see increases above and beyond the 2%-5% that you've received historically? Yeah. Thanks, Ari Klein. The same store, yes, tremendous quarter on that. In terms of how much of that wind at the back is energy, it's actually probably a little less than that number in terms of of any contributions to that. Really strong quarter overall. I believe it was, I wanted to say 40 basis points in that 6.7% that was associated with energy. You know, but really, I think we would have still seen north of 6%, you know, even without that. You know, good really good result there and feeling great about that and feel like we can continue to deliver in sort of our previously guided range, you know, going forward. In terms of the broader pricing strategy, absolutely, we're looking holistically at the pricing strategy, not only, and I've talked about this in a number of other forums. There's sort of several levels to the pricing, you know, strategy and execution. One is power, and that is about sort of making sure that we can fully recover, you know, sort of increases to power in markets where that's occurring, and align that up with our hedging strategy. We've talked in depth about that, but continue to have high degrees of confidence that we can, you know, the combination of our hedging and our ability to pass that through will allow us to mitigate those impacts on the business. Second is actually just a broader increase in list pricing on space and power that is already rolling through and on interconnection. Interconnection tends to, you know, perhaps have slightly faster impact just because, you know, it's or things roll through. It's a little more dynamic, if you will, in terms of the way interconnection rolls through the business. We're raising list prices there. As you know, escalators and I think we will begin to reset escalators at you know levels that we think are more appropriate for the current you know environment and dynamics of the market. We are already looking at new contracts priced at new list price levels with new escalators, and as I said in the sort of prepared remarks, I said that the pricing impacts are largely unrealized, meaning that what you saw in our guide today is not really being fueled by pricing, is really being fueled by strength in unit volumes. Firm pricing, certainly in terms of how we're pricing, but that's really yet to roll through in terms of. I really think we'll start to see those positive pricing impacts in 2023. Got it. If I can just follow up, is there a point at which the higher prices force companies to start to reevaluate their objectives around, you know, data center expansion and whatnot? Yeah, it's a great question. Obviously, you know, sort of what is the elasticity of demand and how elastic or inelastic is the demand is a question we constantly ask and answer. I would tell you that quite empirically, our evidence would demonstrate that our business is highly inelastic. In fact, if you look at our interconnection pricing activity in Europe, you know, over the last couple of years, you know, we saw a tremendous flow-through on that and very little implication from a churn perspective. We've looked hard at kind of where people are in terms of how much of their, you know, their spend overall is tied up in Equinix as a key sort of point of nexus in their digital infrastructure strategy. The reality is, they're getting significant value for that investment, and you know, adjustment in pricing on that has you know, relatively limited impact in their overall dynamic there. You know, we absolutely want to deliver superior value. We think we can do that, you know, at higher price points, and still deliver the value that is gonna compel people to, you know, to make Equinix a central part of their long-term architectures. Thanks for the color. Our next question is from David Barden with Bank of America. You may go ahead. Hey, guys. Thanks so much for taking the questions. I guess I have two kind of higher level questions. Charles, you know, a lot of the investor base hasn't really lived through the possibility of recession as it relates to data centers, and there's two big questions that we get. One is, you know, will businesses kind of pull back on their data center budgets in a recession? And the second is, given all the IPOs we've seen, you know, some of these companies, smaller companies start to fail, as we saw maybe back in 2001, 2002, you know, is that gonna create pressure for the data center business? And I guess if I could ask a second question, maybe this one's for you, Keith. You know, we obviously saw a well-regarded short-selling investor come up with a thesis that said that the data centers have two problems. One is that they're gonna end up competing with their biggest customers, and that's gonna cannibalize the need for legacy data center businesses. Second, it's not obvious the returns on the consolidated data center businesses are actually great. So I know you guys know the answers to those questions, so I'd love to kind of just air those out and kind of hear what you guys are thinking now. Thanks. Sure. David, I'll start, and I'll probably not be able to resist the chance to answer some of the second one in addition. On that front. Go ahead, Charles. I'll hand it over to Keith. As for the broader question on recession and potential impact to the demand backdrop, and in particular around exposure to, you know, failures, business failures and weakness that might represent in either startups or, you know, those types of companies. You know, as I said, you know, right now we're seeing no waning of demand relative to people's investment in digital transformation. In fact, I would argue that I think as they look forward to a potential recessionary environment, many of them are using that either to try to reduce costs by modernizing their IT infrastructure and moving to hybrid and multi-cloud with greater agility in their IT footprint and architecture. They're using that as a fundamental driver of competitive advantage and therefore fuel to their top line, that I think they don't believe they can afford not to invest in. You're seeing that in virtually every sector. You look at retail, for example, and that's a classic example of a sector that people are saying, "Oh boy, recession could, you know, clearly impact consumer wallet, you know, spend, and retail would suffer from that." Well, we are not seeing that show up in terms of their decision-making around their commitment to digital. They simply can't afford not to be prepared for the digital future. We see real strength in that sector. Same could be said for, you know, various elements of banking and financial services, which people say, you know, could feel some of the sting, and yet they continue to invest. Every quarter, it seems that we give you a different set of sectors that are demonstrating strength in our business. I think that's just a reflection of just how durable that demand profile is. We're keeping a close eye on it, but our previous experience in recessionary environments as well as the current pipeline would lead us to believe that, you know, demand continues to be strong, and frankly, we're investing behind that. We're gonna be prudent and appropriate and watch it carefully, but we're gonna put more quota-bearing heads on the street given the level of demand that we're seeing in the business. As to, you know, startups, you know, honestly, our exposure is relatively limited. Startups often start in cloud, and only as they scale, they move to hybrid infrastructures. You know, we don't see a lot of exposure there. We have not seen, you know, sort of business failures or pullback in those as any kind of meaningful contributor to the business. On the short thesis, you know, I would just tell you that I think it represents an underdeveloped understanding of the data center market, and the relative position of various players. Because I think that, you know, as I said, as we said in the script in various ways, the, you know, our relationship with the hyperscalers, which is a key part of that thesis, is significant, both in terms of our underlying contributions to their architecture in terms of network nodes, on-ramps, et cetera, as well as our alignment with them from a go-to-market perspective. In fact, they're amongst our most productive channel partners as they are selling large multi-million-dollar, sometimes multi-hundred-million-dollar contracts, you know, to players that are implementing cloud. Those customers want an answer to what they're gonna do with their private infrastructure and how they're gonna place that proximate to the multi-cloud and how it's gonna perform. And those are the answers that we're providing. You know, those are the questions that we're providing the answers to. You know, I think that we continue to feel like that, you know, this notion of us, you know, sort of that this is a zero-sum game between us and the hyperscalers, I think is just, you know, not an accurate view of the marketplace. On the broader returns, you know, I again would say, yeah, our business is dramatically different on a returns basis. Look at our same-store sales and look at, you know, the 28% cash-on-cash returns of those growing at 7%, which is what we demonstrated this quarter. That is a very, very different story than virtually any other player in the industry can give you. Couldn't resist stealing that question from Keith, but Keith, please feel free to add your two cents. David, maybe I could add just a couple of points to what Charles said, which is all very accurate. The other thing I think is very important for, I think, our investors to appreciate is that we were very wise in our decisioning on how to manage the hyperscale relationships. We have the business that Charles alluded to that sits inside our retail business. Again, it's the on-ramps, the aggregation nodes, the regional network gateways, and things that are very critical to running their core infrastructure. Then there's the piece of the business that is substantial in scale and size that we always chose not to do inside the retail business, and instead set up a structure which is our xScale business. As we've just talked about, our xScale business is humming as well, given, you know, the momentum we're seeing. We have 11 builds underway. We're roughly 80% utilized across all the inventory that we've not only built but are building, or leased, I should say. That puts us in a very good position also to isolate it in that we only have effectively 10% exposure on an equity basis to those investments. The other thing I think is important to note is these hyperscalers, they're looking for alternatives to other than self-build with others because we can do it in locations cheaper and faster than they could do it themselves. I think it's a testament to the quality of our global design and construction teams. The last part I think is really important to appreciate. A lot of these deals are done, they're priced to yield. So the price to yield based on a cost model, prices aren't going down, they're only going up. They're longer term in nature. You price to yield, and I think it's a really important aspect of the contracting terms. As a result, as I said at the Analyst Day last year, at maturity, the revenues associated with hyperscale for us represent about 1%-2% of our top line and will represent at maturity, again, assuming we spend that $8 billion plus, 3%-5% of our AFFO. What we feel there is very resilient not only to the overall performance of our business, but it's also resilient to the price-to-yield strategy that you deploy when you contract under these arrangements. Just to be clear, that last statement in terms of the percentage was relative to hyperscale or to xScale. Our broader business with hyperscale is meaningfully larger than that. It's a billion-dollar-plus business outside of xScale run rate and growing nicely because we play a very critical role in that infrastructure in terms of what they do inside of our retail facilities around the world and because of our relationship with them on a go-to-market alignment perspective. You were online, Charles. Thank you both. Thanks, Dave. Our next question comes from Michael Rollins with Citi. You may go ahead. Thanks and good afternoon. Couple questions if I could. You know, first just on power, if you can give a little bit more detail of what you're seeing in terms of not just power cost in Europe and other markets where there could be issues, but also power availability. How should investors, you know, frame the risk of the supply side of the equation? Just switching gears over to the change in the annual organic revenue growth guidance. Can you give some additional details of as the you've seen that evolution in guidance over the last couple of quarters, where's the relative strength coming from in terms of regions or and/or verticals? Thanks. Thanks, Mike. Again, I'll start and Keith can add on here. Yeah, we're obviously super tuned in to the overall energy situation globally, with a particular focus on Europe, given the uncertainty created by the war in Ukraine. You're right, it's not just a cost question, which we're certainly tuned into, but also availability. So let me tackle them both a little bit. Not a lot new to add on the pricing, you know, power cost situation. It is clearly going up in many markets around the world, and I think that's more evident and more acute in Europe. But we are well advanced in our hedging strategy for 2023 already. We are looking at kind of where we will be on that and then how we will pass that through to our customers. We continue to feel, you know, have a high degree of confidence in our ability, both contractually and executionally, to get that done. The question of availability is a little bit of a different one, and we know that that's on people's minds. Although we don't wanna minimize the issues there, and there's clearly some level of risk that certain trade-offs will need to be made in some countries relative to how power will be allocated, we continue to feel really confident in our ability to maintain availability of our services to our customers. Let me tell you kind of why that is. There's really three different levels to the issue, and this relates particularly to the question around natural gas potential implications to the Nord Stream availability and overall supply there. We think about it in kind of three levels. First one is, will the grid be sort of constrained in its ability to deliver the amount of electricity required? That's really a factor of, particularly as it relates to gas, a factor of one, is the grid primarily or substantially gas-powered? Two, if it is gas-powered, how exposed is it to the potential shortfalls associated with particularly Russian supply? What I would tell you is that, you know, generally speaking, natural gas is the underlying source for just a fraction of the electricity generation across our EMEA portfolio. It ranges from almost zero in the Nordics to call it 30% around there in the Netherlands, UK, Turkey, and Portugal. There's a second level question though, which is, in markets that are dependent to some degree on natural gas, how much of that is potentially at risk for, you know, for in terms of Russian supply? In that case, you know, only the Netherlands and Turkey have more than a 25% dependency on Russian gas. The composite is really the composite risk is really the product of those two things. We feel like it's very manageable. That's the first level is, will the electricity grid really be impacted by these things and fall short of its ability to deliver? The second level question is, if that were to occur, which we think it has some chance of occurring, what will the, you know, what will local governments and regulators do, and how will they deal with power allocations? You know, on that level, you know, we think that, you know, we're confident that we think that those local regulators have a very deep understanding of the criticality of our facilities and that our facilities are inherent to the proper functioning of the internet, of the economy, and candidly to society at large. We have these sort of critical infrastructure designations in these countries for that reason. We feel confident that we're going to, you know, continue to have, you know, continuity for Equinix data centers be a keen area of focus for those folks and get, you know, the appropriate allocations accordingly. The last level of that question is, even if all of that were to fall down, well, we have the resilience within our facilities in the event of any interruption or intermittency in electric supply. Our facilities are designed with high degrees of redundancy, and our ability to manage through intermittent or even extended periods of interruption to grid availability is very strong. Our track record on delivering exceptional availability, even in adverse circumstances like that, is really well known and I think frankly a testament to really the professionalism and preparedness of our team. So that's a lot, but it's, you know, as you might imagine, it is a topic of significant energy and discussion and focus for us. All in all, we feel you know, while it is a less than ideal situation in terms of rising costs and potential risks around availability, it's one we feel very well positioned to manage. Just while we're on that topic of power, maybe before getting to the revenue question, just one other follow-up. Any update on Singapore, you know, which was a larger discussion during the Q4 earnings call? Sure. Quick one, Mike. No real update. It's coming in pretty much as we had expected. Again, that exposure in terms of what we're kind of eating, if you will, relative to Singapore, we think will resolve itself going into 2023. No real update. You know, it has some level of impact on our business from a margin perspective this year, but we believe that we can resolve that going into 2023. Just the regions and verticals of relative strength as you've increased the organic constant currency revenue growth guidance. Yeah. I'll just give you a quick two cents on that and then have Keith add to it. Look, our business is super diverse in terms of. All of our regions are performing well. Absolutely great quarter from Europe. America's performance continues to be strong. You saw APAC was our fastest grower, right? You know, now I expect that to be the case. I think the overall dynamics of Asia are gonna continue to allow it to lead there. You know, amazing performance in Europe, really strong across sectors. Again, I think we're seeing strength in. This is really the ecosystem nature of our business. We're seeing strength both on the supply side, meaning all these service providers ramping their business to deliver services required for digital transformation, and they're doing that at Equinix. The enterprise buyer really seeing Equinix as this point of nexus to really house their hybrid IT infrastructure. You know, the short answer is we're seeing it cross regions and cross sectors. Keith, what would you want to add there? Yeah. Mike, maybe just adding a couple points to Charles's comment. When you look at our overall growth, we telegraphed above sort of Analyst Day guide and said that we can grow the business on a normalized and constant currency basis or normalized, taking out the acquisitions, by 10%-11%. And of that 10%-11% of growth, roughly 60 basis points is power, roughly 60 basis points of power price increases that we sort of initiated at the beginning part of the year. You can see that the core business is performing just phenomenally well. The U.S., the Americas business specifically, is performing exceedingly well. Growing at 10%, 11%, it just gives you a sense of the momentum, and it's across the verticals, and it's in the markets that we're fueling basically the capacity. You can also see that we're building 13 new projects. There's 49 projects in total, and we call them major projects. There's much more than 49 projects underway, but 49 major projects underway. You know, a number of 34 markets, I think, 21 countries. We're building across the portfolio. Just as a reminder to everybody, the majority of our growth comes from the install base. 90%+ of all our bookings is coming from that install base. Despite the fact that we don't have work, we're seeing the concentration decrease, but the dispersion increase. That's just a phenomenal aspect of our business model. Then the last thing I'll just say is our pricing has been strong. You know, again, another quarter of net positive pricing actions, notwithstanding all the comments that Charles made, which is those are things we'll see in the future. The relationship of a price increase to a price decrease this quarter was 3.2 to 1. For every dollar of decrease, we saw 3.2 dollars of increase. It gives you a sense of the momentum in our business. Then you can't hide away from the fact that our digital services, they're just performing at a very high clip, and that's adding to the overall business. It's a combination of all these things that are giving you the positive momentum in revenues. Our next question is from Jonathan Atkin with RBC Capital Markets. You may go ahead. Thanks very much. You talked a lot about influences around the business, around strong demand and power costs, pricing increases. I wonder if you can maybe flesh out a few of the other kind of headwinds or tailwinds as we think about how to model rest of this year, next year around churn and G&A, and maybe any other items that you want to call out, and then crystallize maybe kind of the net impact of how you see margins and AFFO per share trending into next year. Thanks. Sure. Yeah, I mean, I think there's obviously a lot of levers in the business. I do think churn continues to be generally a good news story. I think we're seeing, you know, I think our level of sophistication we have in sort of understanding, modeling, and being able to effectively manage churn has really improved dramatically over the years. I think, you know, so we forecast virtually all, you know, with pretty great precision our churn, you know, on a quarter-to-quarter basis. I think we see that as actually a continued, you know, positive story, and that's part of what's been contributing to these sort of record net bookings levels. I think G&A is an area of continued opportunity for us in the business. I think, you know, as we look at our hiring, for example, I said we're investing in the business in terms of driving, you know, quota-bearing heads into the market given the strong demand backdrop. We're being very prudent as it relates to adding G&A. We think that's appropriate in this environment, and we're really kind of pulling the reins back, adding, you know, only where we feel that's absolutely critical. Also investing in some of the automation and simplification that we're looking for to drive efficiencies in the business. I think that, you know, what we hope that will continue to do is give us progression, you know, over time towards that long-term target of 50%. I think we're already seeing some of that. I think on the other side of it, there are some headwinds, and right, utilities are part of that. You know, the Singapore situation was fairly unique this year. We think that will resolve next year. I do think that the broader utility situation as prices rise, even though I think our hedging strategy and then our pricing increases will allow us to recover that, I do think that some of the increases are gonna be a bit more zero calorie from a margin standpoint, and that is probably gonna affect margins on a percentage basis. You know, I think that our focus is really on driving the top line and then getting the flow through to AFFO per share. I think that's what you're seeing in our guide, and that's what we're gonna really continue to focus on. Jonathan, let me add a couple comments just to Charles's comments as well. Again, you asked about the second half of the year. I think it's important to realize, number one, Q2 had some xScale non-recurring revenues in it. Think about next quarter that our non-recurring revenues are gonna go down about $10 million quarter over quarter, and then you should see them step back up in Q4. That's one thing that's happening. Second thing is we're making an investment in the business. We're being very deliberate about committing to the top line, committing to the value on a per share basis, and driving as hard as we can on that. At the same time, still making decisions about investing in the business. Charles alluded to the quota-bearing heads. There's development costs, another $10 million of costs in the second half of the year that weren't in the first half of the year. There's some lease adjustments of $11 million that's going through the second half of the year related to some Hong Kong leases. We're investing in T&E, another $15 million because we think that's money well spent getting our go-to-market engine in front of the customers, as well as our teams working together coming out of a post-COVID environment. Overall, I would say you're gonna continue to see momentum in the business. The guide is the guide, but we're deliberately making investments to set ourselves up for a good 2023. The last thing I think is really important to note. Look, absent the implications of currency with 60% of our revenues residing outside of the US, it has an impact to us. We know that will revert over some period of time. When we look at it, we're placing our bets on our hedging strategies. We're doing all the things that you would expect us to do to try and give you the predictability and the forward-looking visibility. By the same token, absent what we just you know reported, our revenues we just hit it this quarter for $100 million because of the weakness in the non-US currencies. When that goes back to more traditional levels where other markets start to roll, increase their interest rates similar to what the U.S. is doing here to stave off inflation, you're gonna see us recover that type of value. You know, the implications on revenue is $100 million, EBITDA is $50 million, and AFFO is $42 million. You add $0.46 just this quarter alone, we're impacting the year's guidance by $0.46 just because of FX. Most of that is being recovered by better business performance. So there's a number of things that we'll continue to talk about in Q3, Q4, and certainly as we spend time with you in February on the 2023 guide on these matters. Thanks. That's very helpful. xScale had a strong leasing quarter. Are you pricing in line with the market or are you seeing a slightly different trend? Yeah, I mean, I think that, you know, as we've said, you know, xScale tends to be one where it's probably a narrower band in pricing. Pricing, I think, is dictated substantially more by supply and demand characteristics in any given market. I would say that, you know, we feel great about our ability to deliver a fantastic offering to those customers. But I'd say it's, you know, it prices more, you know. It's It's market in xScale, I think, is gonna price in a narrower band. Our next question is from Frank Louthan with Raymond James. You may go ahead. Great. Thank you. How many new logos did you sign in the quarter, and how has that been trending in the last few quarters? In particular, what sort of verticals are you seeing the most strength with? Like, well, look, overall, there's roughly 300 new logos in the quarter. I think the exact number is 286. Is that what it is? Anyway, as I said, we're seeing it. Look, a lot of the growth comes from the install base as you understand, but we're seeing it across the portfolio. We talked about content and digital media, cloud IT services. It's really across the board. It goes back to Charles's comments. As companies start to progress with their digital transformation, all sort of paths lead to Equinix. From our perspective, there's not anything and everything that you sort of look at, we have an opportunity to either we have won it or we actually have it within our pipeline. I would say that it's hard to sort of pinpoint one thing because if we have the capacity, we have the ability to sell in that market. You know, one of my prepared comments was, in the emerging markets, what we call the growth in emerging markets out of Europe, you know, we're seeing tremendous opportunity there. It was again a high-performing quarter for us. These are sort of the, if you will, the secondary markets to our majors, our majors where we do $100 million or more. Really right across the board, both from a geographic perspective, from a vertical perspective, and then certainly from a customer perspective. It's a combination of all those that make us feel very, very good about what we're seeing in our pipeline and the amount of activity we saw this past, really this past quarter. We've had growth over the last eight quarters in a row in our net bookings line. It tells you about the momentum, and this quarter was an off-the-charts one. Last quarter was fantastic. This quarter was better than fantastic. Yeah. I'd add two more pieces of color around new logos, Frank. One, you know, I would say if you look at the you know the non-financial metrics, you know, we're in a relatively tight band on that. I think one thing that gets lost in that a bit is the number of customers that come to us through channel partners. Those don't show up in that because we actually book that through the channel partner. That really masks, I think, some of the momentum we like to see, particularly in the broader enterprise market, where we're relying on some of our, you know, key partners around the world, you know, whether that be an AT&T or an Orange or a Telstra or you know whatever, a variety of types of partners of ours that are bringing those customers to the table. I think that's something that's kind of lost there, but an area, you know, given the strength of our channel, I think that's continuing to add significantly. The other thing I would say is our success with what we refer to as star targets, these, you know, sort of, the Global 2000 type companies that we're really focused on. Good momentum there. In fact, we had a number of Global 2000 additions this quarter. I think the team is just doing a fantastic job of helping those large, complex, global multinationals really think through their strategies on the enterprise side. On the service provider side, virtually every enterprise is you know, there are a lot of them are becoming service providers, and we're helping them on that journey, and because everything's going as a service. I think we're seeing some real strength on that side as well. All right, great. The gift that keeps on giving. Thanks. Thanks. Thank you. This concludes our Q2 conference call. Goodbye. This concludes today's conference. Thank you for participating. You may disconnect.