Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

While we have one primary line of business, which is the design, build-out and operation of IBX data centers, we have determined that we have three reportable segments comprised of our Americas, EMEA and Asia-Pacific geographic regions. Each of our three reportable segments are managed by regional presidents and require unique strategies due to the varying microeconomic and macroeconomic conditions within each region. Our chief executive officer is our chief operating decision maker and evaluates performance, makes operating decisions and allocates resources primarily based on our revenues and adjusted EBITDA, both on a consolidated basis and for these three reportable segments. Intercompany transactions between segments are excluded for management reporting purposes.

We define adjusted EBITDA, our measure of segment profit or loss, as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies, except that segment expenses exclude depreciation, amortization and accretion expense and stock-based compensation expense, consistent with the definition of adjusted EBITDA.

The following tables present segment information, including revenue information disaggregated by product lines and segment adjusted EBITDA, and a reconciliation to total consolidated income before income taxes (in millions):

	Year Ended December 31, 2024
	Americas		EMEA		Asia-Pacific		Total
Colocation (1)	$	2,474	$	2,235	$	1,349	$	6,058
Interconnection	885		340		294		1,519
Managed infrastructure	261		138		68		467
Other (1)	27		99		14		140
Recurring revenues	3,647		2,812		1,725		8,184

Non-recurring revenues	215		155		194		564
Total revenues (2)	$	3,862	$	2,967	$	1,919	$	8,748
Less:
Segment cost of revenues	1,158		1,190		635		2,983
Other segment items (3)	995		399		274		1,668
Segment adjusted EBITDA	1,709		1,378		1,010		4,097
Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense							(2,011)
Stock-based compensation expense							(462)
Transaction costs							(50)
Restructuring charges							(31)
Impairment charges							(233)
Gain on asset sales							18
Interest income							137
Interest expense							(457)
Other expense							(17)
Loss on debt extinguishment							(16)
Income before income taxes							$	975

(1)    Includes some leasing and hedging activities.

(2)    Total revenues attributed to the U.S. were $3.3 billion. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2024.

(3)    Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.

	Year Ended December 31, 2023
	Americas		EMEA		Asia-Pacific		Total
Colocation (1)	$	2,364	$	2,112	$	1,289	$	5,765
Interconnection	821		308		266		1,395
Managed infrastructure	250		130		72		452
Other (1)	22		98		13		133
Recurring revenues	3,457		2,648		1,640		7,745
Non-recurring revenues	160		190		93		443
Total revenues (2)	$	3,617	$	2,838	$	1,733	$	8,188
Less:
Segment cost of revenues	1,047		1,199		624		2,870
Other segment items (3)	956		388		272		1,616
Segment adjusted EBITDA	1,614		1,251		837		3,702

Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense	(1,844)
Stock-based compensation expense	(407)
Transaction costs	(13)
Gain on asset sales	5
Interest income	94
Interest expense	(402)
Other expense	(11)
Income before income taxes	$	1,124

(1)    Includes some leasing and hedging activities.

(2)    Total revenues attributed to the U.S. and the United Kingdom were $3.1 billion and $822 million, respectively. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2023.

(3)    Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.

	Year Ended December 31, 2022
	Americas		EMEA		Asia-Pacific		Total
Colocation (1)	$	2,188	$	1,744	$	1,151	$	5,083
Interconnection	756		268		244		1,268
Managed infrastructure	218		119		78		415
Other (1)	21		75		9		105
Recurring revenues	3,183		2,206		1,482		6,871
Non-recurring revenues	166		136		90		392
Total revenues (2)	$	3,349	$	2,342	$	1,572	$	7,263
Less:
Segment cost of revenues	994		866		574		2,434
Other segment items (3)	833		368		258		1,459
Segment adjusted EBITDA	1,522		1,108		740		3,370
Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense							(1,740)
Stock-based compensation expense							(404)
Transaction costs							(22)
Loss on asset sales							(4)
Interest income							36
Interest expense							(356)
Other expense							(51)
Income before income taxes							$	829

(1)    Includes some leasing and hedging activities.

(2)    Total revenues attributed to the U.S. were $2.9 billion. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2022.

(3)    Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.

We provide the following additional segment disclosures for the years ended December 31 (in millions):

	2024		2023		2022
Depreciation and amortization:
Americas	$	1,119	$	1,001	$	933
EMEA	530		501		458
Asia-Pacific	360		343		346
Total	$	2,009	$	1,845	$	1,737
Capital expenditures:
Americas	$	1,838	$	1,627	$	1,139
EMEA	808		717		751
Asia-Pacific	420		437		388
Total	$	3,066	$	2,781	$	2,278

Our long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, were located in the following geographic regions as of December 31 (in millions):

	Property, plant and equipment, net				Operating lease right-of-use assets
	2024		2023		2024		2023
Americas (1)	$	9,193	$	8,611	$	389	$	421
EMEA	6,405		6,321		398		368
Asia-Pacific	3,651		3,669		632		660
Total	$	19,249	$	18,601	$	1,419	$	1,449

(1)Property, plant and equipment, net of $7.2 billion and $6.7 billion and operating lease right-of-use assets of $368 million and $398 million were located in the U.S. as of December 31, 2024 and 2023, respectively.