Revenue Growth

FY 2025

Raised by $142 million, maintaining a 7% to 8% normalized and constant currency growth rate "

Expected to grow at a 7% to 8% normalized and constant currency growth rate "

lowered

Adjusted EBITDA

FY 2025

Raised by $85 million, with margins expected to be approximately 49% and a 210 basis point improvement "

Raised by $46,000,000, with margins expected to be approximately 49%, with strong second-half margins at or near 50% "

lowered

AFFO per Share Growth

FY 2025

AFFO per share growth of 7% to 9% (with overall AFFO raised by $69 million) "

Expected AFFO per share growth ranging between 7% to 10% compared to the previous year "

raised

Capital Expenditures

FY 2025

Expected to range between $3.4 billion and $3.7 billion, including approximately $180 million of on-balance sheet xScale spend and about $270 million of recurring CapEx "

Expected to range between $3.8 billion and $4.3 billion, including a recurring CapEx of $280,000,000 "

raised

Recurring revenue growth

Q1 2025: Reported 8% YoY growth on $2.2B revenues with expectations for stepped‐up recurring revenue. " " " Q4 2024: Solid recurring revenue performance underpinning 2025 guidance and margin expansion. " " "

Q2 2025: Strong recurring revenue growth of 7% YoY driven by robust bookings momentum and expectations for further quarterly improvement. " " "

Consistent focus with steady growth, continuing from prior periods.

Bookings pipeline consistency

Q1 2025: Emphasized consistent pipeline with over 4,100 deals across 3,200+ customers and strong deal conversion. " " Q4 2024: Achieved record gross bookings and a robust backlog supporting future growth. " " "

Q2 2025: Maintained a strong, consistent pipeline with 4,100 deals across 3,300+ customers and $345 million of annualized gross bookings, reinforcing near-term revenue momentum. " "

Stable emphasis on pipeline consistency across periods.

AI-driven demand

Q1 2025: Focus on AI-related customer deployments (e.g. Blocks deploying DGX Superpod, Grok scaling high-performance infrastructure) driven by cloud and hyperscaler relationships. " " Q4 2024: Highlighted AI inference demand and expected widespread AI adoption. "

Q2 2025: Shift from pilot phases to full “always-on AI” integration with customers establishing AI centers of excellence and deploying secure, distributed AI use cases. " "

Evolving from early wins to more mature, integrated AI adoption.

Infrastructure expansion

Q1 2025: Stressed expansion with active xScale projects and projects like Washington D.C. (DC17) to boost capacity. " " Q4 2024: Emphasized large-scale expansion and new data center builds to overcome capacity constraints. " "

Q2 2025: Continued global infrastructure expansion with 59 major projects underway, including new retail projects and an acquisition in the Philippines, demonstrating sustained capital investment. "

Ongoing aggressive expansion with geographic and capacity diversification.

Accelerated capacity expansion and new capacity stabilization (Build Bolder strategy)

Q1 2025: Noted accelerated build timelines (e.g. NY3, DC16, LD14) and transitioning to larger, fewer IBXs to meet demand. " " Q4 2024: Highlighted streamlined build cycles and robust retail & xScale pipelines to overcome Tier 1 constraints. " "

Q2 2025: Detailed focus on the Build Bolder strategy with pre-purchase of components, collapsing build phases, and shortened stabilization timelines to support accelerated capacity delivery. " "

Continued aggressive capacity initiatives with heightened emphasis on risk mitigation and pre-buy strategies.

Customer churn and retention challenges

Q1 2025: MRR churn at 2.4% with notable effects from bankruptcies (e.g. Technicolor in EMEA) while expecting most churn to be temporary. " " " Q4 2024: Reported 2.5% MRR churn with normalization around 2.2%, emphasizing frictional churn and interconnection benefits. "

Q2 2025: MRR churn increased slightly to 2.6%, driven mainly by the AGEO bankruptcy, though most churn does not lead to permanent customer loss, reinforcing the role of capacity expansion in retention efforts. " "

Slight uptick in churn in Q2 due to a specific bankruptcy, but overall retention strategies continue to mitigate long-term impacts.

Margin pressure and revenue growth concerns

Q1 2025: Discussed margins at 48% with expectations to reach near 50% later in the year and maintained 8% YoY revenue growth despite some churn events. " " " Q4 2024: Focused on margin expansion (improving adjusted EBITDA by 190 bps) and steady recurring revenue offsetting deceleration concerns. " "

Q2 2025: No margin pressure noted; instead, reported historic adjusted EBITDA margins reaching 50% and raised full-year 2025 revenue guidance (7%-8% growth), emphasizing strong financial performance. " " " "

A shift from cautious commentary to an optimistic tone as margins and revenue growth strengthen.

Interconnection revenue dynamics

Q1 2025: Reported 9% YoY growth in interconnection revenue with 3,900 new interconnections driven by new deployments and virtual connections. " " " Q4 2024: Also seen 9% YoY growth with 6,000 incremental interconnections and increasing adoption of higher-speed circuits. "

Q2 2025: Interconnection revenue grew by 8% YoY with 6,200 new interconnections, driven by cloud and AI expansion, while acknowledging past volatility (sawtooth pattern) noted by market analysts. " "

Consistently strong growth with minor volatility noted earlier, now reinforced by robust new additions.

Risks from accelerated CapEx/spend and build execution issues

Q1 2025: No explicit mention of risks; general comments on accelerated capacity builds were noted. " " Q4 2024: Indirectly addressed through streamlined build cycles to overcome capacity constraints. " "

Q2 2025: Explicitly addressed risks related to supply chain constraints and energy access; detailed pre-purchase strategies and maintaining RFS delivery dates to mitigate execution issues. " " "

Increased focus in Q2 on proactively managing external risks, showing a move toward more detailed risk mitigation.

xScale expansion and market penetration

Q1 2025: Emphasized a strong xScale pipeline with robust pre-leasing, strategic hyperscaler relationships, and $40M SG&A investments in xScale. " Q4 2024: Demonstrated aggressive xScale growth with tripled investment capital and 16 projects, achieving over 85% pre-leasing. " " "

Q2 2025: Continued xScale expansion with 12 global projects underway, over 85% leased/pre-leased, and active executive engagement with hyperscaler partners to secure additional capacity for AI workloads. " "

Consistent robust growth with ongoing strategic initiatives centered on AI and hyperscalers, reinforcing market penetration.

Decline of nonrecurring revenue focus

Q1 2025: Noted a decline, with nonrecurring revenue expected to drop by $38M due to lower fit-out costs for xScale projects. " Q4 2024: Indicated nonrecurring revenues would remain flat in 2025, with the focus shifting to recurring revenue growth. "

Q2 2025: Reported a noticeable decline in nonrecurring revenues (from lower XScale fit-out revenues), with an anticipated uptick later in Q4 driven by the xScale pipeline. " " " "

Continued lower emphasis on nonrecurring revenue, with expectations of recovery in later quarters.

Challenges in penetrating smaller customer segments

Q4 2024: Highlighted challenges in reaching smaller customer segments due to historical enterprise-focus, prompting initiatives like enhanced channel programs and digital sales motions. " Q1 2025: Not specifically mentioned.

Q2 2025: No specific mention of challenges with smaller customer segments was provided. " "

Reduced focus or omission in Q2, suggesting either resolution of past challenges or a strategic shift toward larger accounts.