Related Party Transactions

12 Months Ended

Dec. 31, 2020

EMEA Joint Venture

As described in Note 5 above, the Company sold certain data center facilities in Europe to the EMEA Joint Venture in October 2019 and recognized a gain on asset sale of $45.1 million during the year ended December 31, 2019. In December 2020, the Company sold the PA9 data center to its EMEA Joint Venture and recognized an insignificant loss on the sale. For further information on the sale of data center transactions, see Note 5 above.

In 2019, the Company also entered into a sub-lease agreement with the EMEA Joint Venture to sub-lease a portion of Equinix's London ("LD") 10-2 data center or former LD10 data center, for 15 years. The Company accounted for the lease of the LD10-2 data center as a finance lease. As of December 31, 2020, the Company recorded a finance lease ROU asset of £94.7 million and liability of £97.3 million, or approximately $127.2 million and $130.8 million, respectively, at the exchange rate in effect on December 31, 2020. As of December 31, 2019, the ROU asset and liability was £103.2 million, or approximately $136.7 million at the exchange rate in effect on December 31, 2019. For the year ended December 31, 2020, the Company recorded £11.1 million, or approximately $14.9 million at the exchange rate in effect as of December 31, 2020, of rent expense for the LD10-2 data center. For the year ended December 31, 2019, the rent expense for the data center was insignificant.

In 2019, the Company also entered an agreement to lease to the EMEA Joint Venture a portion of land at its Frankfurt 2 data center site (or referred to as the Frankfurt 9 xScaleTM data center) and a new building that is under construction at the land. The lease will have an initial term of 30 years and 2 renewal options of 10 years each. The consideration of the lease agreement will be based on the total cost of construction as determined when the construction is completed. As of December 31, 2020, the lease has not commenced yet and the Company recorded €14.1 million, or approximately $17.3 million at the exchange rate in effect as of December 31, 2020, of other liabilities in connection with the construction of the Frankfurt 9 xScaleTM data center.

The Company provides various services to the EMEA Joint Venture through multiple agreements, including sales and marketing, development management, facilities management, and asset management services. During the year ended December 31, 2020 and December 31, 2019, the Company had $6.5 million and $7.2 million, respectively, in total of receivables from the EMEA Joint Venture. During the year ended December 31, 2020, the total revenue recorded from these services was $21.3 million. For the year ended December 31, 2019, the total revenue recorded from these services was insignificant. See Note 6 above for more information on the EMEA Joint Venture. The transactions with the EMEA Joint Venture are generally considered to have been negotiated arm's length.

Asia-Pacific Joint Venture

In December 2020, the Company also sold certain data center facilities in Asia-Pacific region to the Asia-Pacific Joint Venture and recognized an insignificant gain on assets sale during the year ended December 31, 2020. For See Note 5 above for more information on the transaction.

In connection with the Asia-Pacific Joint Venture investment, the Company also entered several agreements to provide various services to the Asia-Pacific Joint Venture, including portfolio management, sales and marketing, development, and facilities management services. During the year ended December 31, 2020, the Company had ¥1.7 billion or $16.9 million, in total at the exchange rate in effect on December 31, 2020, of receivables from the Asia-Pacific Joint Venture. During the year ended December 31, 2020, the total revenue recorded from these services and the accounts payable was insignificant. See Note 6 above for more information on the Asia-Pacific Joint Venture. The transactions with the Asia-Pacific Joint Venture are generally considered to have been negotiated arm's length.

Other Related Party Transactions

The Company has several significant stockholders and other related parties that are also customers and/or vendors. The Company's activity of other related party transactions was as follows (in thousands):


	Years ended December 31,
	2020		2019		2018
Revenues	$	95,264	$	25,905	$	19,439
Costs and services	10,849		15,844		19,708


	As of December 31,
	2020		2019
Accounts receivable	$	6,519	$	3,345
Accounts payable	—		800