XML 66 R25.htm IDEA: XBRL DOCUMENT v3.25.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Joint Venture Related Party Transactions
Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement (the "AMER 2 Loan") with the AMER 2 Joint Venture, as a lender, with a maximum commitment of $392 million and a maturity date of April 10, 2028. We received an upfront fee of $4 million in connection with the origination of the loan, and earn interest at a contractual rate of 10% per annum on the drawn portion plus an unused commitment fee of 0.75% per annum on the undrawn portion, each payable quarterly. The term of the loan may be extended at the option of the borrower for one additional year subject to an extension fee, and may be prepaid subject to a penalty if such prepayment occurs within the first 18 months of issuance. The AMER 2 Loan is secured by the assets of the AMER 2 Joint Venture, including the SV12 data center site. The equity partners of the AMER 2 Joint Venture have provided limited guarantees in connection with the AMER 2 Loan, which require payments to the lender proportionately upon certain occurrences, such as a shortfall in capital necessary to complete construction or to make interest payments. Additionally, the equity partners may be liable for repayment of up to the entire debt balance upon the occurrence of certain adverse acts such as a non-permitted transfer of the SV12 data center site. The AMER 2 Loan was negotiated at arm's length. We have assessed the credit risk associated with the AMER 2 Loan to be low and the allowance for credit loss as of December 31, 2024 is insignificant. The maximum amount of credit loss we are exposed to is the outstanding principal, plus accrued interest and unused commitment fees. As of December 31, 2024, the total amount outstanding under the AMER 2 Loan, net of the unamortized upfront fee, was $258 million. Additional amounts may be drawn down by the borrower periodically as needed for the continuation of development and other working capital needs.
We have lease arrangements and provide various services to the EMEA 1 Joint Venture and the VIE Joint Ventures (collectively, the "Joint Ventures") through multiple agreements, including sales and marketing, development management, facilities management, asset management and procurement service agreements. These transactions are generally considered to have been negotiated at arm's length.
The following table presents the income and expenses from these arrangements with the Joint Ventures in our consolidated statements of operations (in millions):
Years Ended December 31,
Related PartyNature of Transaction202420232022
EMEA 1 Joint VentureIncome$27 $29 $39 
EMEA 1 Joint Venture
Expenses (1)
16 18 8 
VIE Joint Ventures (2)
Income (3)
257 107 40 
(1)Primarily consists of rent expenses for a sub-lease agreement with the EMEA 1 Joint Venture for a London data center with a remaining lease term of approximately 15-years as of December 31, 2024.
(2)Expenses from transactions with VIE Joint Ventures were insignificant for the years ended December 31, 2024, 2023 and 2022.
(3)Primarily consists of revenues related to lease and services arrangements as described above and also includes interest income earned on the AMER 2 Loan for the year ended December 31, 2024 of $17 million.
We have also sold certain data center facilities to our Joint Ventures and recognized gains or losses on asset sales as described in Note 5.
The following table presents the assets and liabilities from related party transactions with the Joint Ventures in our consolidated balance sheets (in millions):
EMEA 1 Joint VentureVIE Joint Ventures
As of December 31,As of December 31,
Balance Sheet2024202320242023
Accounts receivable, net$4 $19 $50 $23 
Other current assets (1)
19 19 128 43 
Property, plant and equipment, net (2)
145 97 74 72 
Operating lease right-of-use assets2 2 2 2 
Other assets (3)
— — 302 21 
Other current liabilities5 9 10 6 
Finance lease liabilities164 111 78 75 
Operating lease liabilities2 2 2 2 
Other liabilities (4)
48 50 11 — 
(1)The balance primarily relates to contract assets and other receivables.
(2)The balance relates to finance lease right-of-use assets.
(3)As of December 31, 2024, the balance primarily relates to the AMER 2 Loan receivable. As of December 31, 2023, the balance primarily relates to contract assets and other receivables.
(4)The balance primarily relates to the obligation to pay for future construction for certain sites sold as a part of the EMEA 1 Joint Venture transaction.
Other Related Party Transactions
We have several significant stockholders and other related parties that are also customers and/or vendors. Our other related party transaction activity was as follows (in millions):
Years ended December 31,
202420232022
Revenues$218 $310 $236 
Costs and services18 38 59 
As of December 31,
20242023
Accounts receivable, net$15 $33 
Accounts payable4 —