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Equity Method Investments (Tables)

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

The following table summarizes our equity method investments (in thousands), which were included in other assets on the condensed consolidated balance sheets:


Investee	Ownership Percentage	September 30, 2021		December 31, 2020
EMEA 1 Joint Venture with GIC	20%	$	114,836	$	101,892
EMEA 2 Joint Venture with GIC	20%	30,386		—
Asia-Pacific 1 Joint Venture with GIC	20%	56,566		43,432
Other	Various	18,790		17,747
Total		$	220,578	$	163,071

Summary of the maximum exposure losses of VIE Joint Ventures

The following table summarizes our maximum exposure to loss related to the Asia-Pacific 1 Joint Venture and EMEA 2 Joint Venture as of September 30, 2021 (in thousands):


	Asia-Pacific 1 Joint Venture		EMEA 2 Joint Venture
Equity Investment	$	56,566	$	30,386
Outstanding Receivables	3,844		11,451
Future Equity Contribution Commitments 1	1,098		57,662
Maximum Future Payments under Debt Guarantees 2	N/A 3		30,389
Total	$	61,508	$	129,888

(1)The joint ventures' partners are required to make additional equity contributions proportionately upon certain occurrences, such as a shortfall in capital necessary to complete certain construction phases or make interest payments on their outstanding debt.

(2)In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with our guarantees covering 20% of all payments of principal and interest due under EMEA 2 Joint Venture's credit facility agreements (see Note 11).

(3)The Asia-Pacific 1 Joint Venture’s debt is secured by the net assets of the Asia-Pacific 1 Joint Venture without recourse to its partners.

Summary of other related party transactions

The following table presents the revenues and expenses from these arrangements with the Joint Ventures in our condensed consolidated statements of operations (in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
Related Party	Location of Revenues (Expenses)	2021		2020		2021		2020
EMEA 1 Joint Venture	Revenues	$	11,698	$	6,061	$	30,548	$	14,609
EMEA 1 Joint Venture	Expenses (1)	(4,006)		(3,369)		(12,786)		(10,560)
Asia-Pacific 1 Joint Venture	Revenues	4,044		—		18,489		—
EMEA 2 Joint Venture	Revenues	884		—		884		—

(1)We have a sub-lease agreement with the EMEA 1 Joint Venture to sub-lease a portion of London ("LD") 10-2 data center or former LD10 data center, for a total of 15 years. Balances primarily consist of rent expenses for the LD10-2 data center.

The following table presents the assets and liabilities from related party transactions with the Joint Ventures in our condensed consolidated balance sheets (in thousands):


Related Party	Balance Sheet Line Item	September 30, 2021		December 31, 2020
EMEA 1 Joint Venture	Receivables (1)	$	35,466	$	6,459
	Contract Assets (2)	37,322		5,614
	Finance Lease Right of Use Assets (3)	120,616		127,197
	Other Liabilities and Payables (4)	18,541		17,646
	Finance Lease Right of Use Liabilities (3)	126,080		130,756
Asia- Pacific 1 Joint Venture	Receivables (1)	3,844		16,936
EMEA 2 Joint Venture	Receivables (1)	11,451		—

(1)Balances primarily consist of amounts due under commercial service agreements.

(2)A portion of the contract asset balance relates to commitments to the EMEA 1 Joint Venture to complete a residual portion of the PA9 data center sold to the EMEA 1 Joint Venture, which is reimbursable in full upon completion. The remaining balance represents contract assets recorded under our commercial service agreements.

(3)Balances pertain to the LD10-2 data center sub-lease as described above.

(4)We have an agreement to lease to the EMEA 1 Joint Venture a portion of land for the Frankfurt 9 xScale data center and a new building that is under construction on the land. As of September 30, 2021, the lease has not commenced yet. Balance primarily consists of liabilities recorded in connection with the construction of the Frankfurt 9 xScale data center. The remaining balance pertains to meter and power charge accruals under the LD 10-2 sublease.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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