We’re only going to do enterprise/Colo versus hyperscale. It’s going to vary by market and what our customer needs are. But we’re actually pretty bullish and optimistic on both right now in terms of underlying fundamentals and potential for rent growth.
Operator: Thank you. And our next question comes from Simon Flannery of Morgan Stanley. Please go ahead.
Simon Flannery: Great. Thank you very much. Good evening. Great to see the leasing in Louden County. It looks like the Americas was about 80% of your leasing. Could you just talk a little bit about Europe and Asia Pac? It seems like AI sort of starting off in the U.S. you talked about Copenhagen as well. But just help us think about broadening this out beyond the kind of key U.S. markets. And then, Matt, on the leverage, could you just update us on getting — once you get to the 5.8, what’s the plan from there?
Andrew Power: Thanks. So I’ll do a quick — the quick non-U.S. world tour. You’re correct, Americas had put up some record results in contribution and that was not just in the greater than megawatt category, it was also a major contributor in our less than megawatt category, which is great to see. Outside the U.S., starting in EMEA on the 0 to 1 megawatt category, Frankfurt, Amsterdam and London shined and on the greater than 1 megawatt category, which Colin, I think touched on, London turned out to be a big contributor this quarter, which has not been for a while, which is also great to see. We saw a fair bit of importing business into Europe from outside of Europe on both sides and firm brightness pricing. In APAC, while this particular quarter, we did not have a significant contribution from the greater than megawatt category.
We did have strong results, both in pricing and volume on the 0 to 1 megawatt category with Singapore, Hong Kong and Seoul leading the way. And I would just say that the greater than megawatt category, it’s just the fact that there’s just fewer markets in APAC that we’re landing big deals into. So it’s not as consistent of every single quarter being a major contributor. But all-in-all, I agree with your sentiment that AI has certainly landed on the U.S. shores sooner than the rest of the globe and I think it has a great propensity to likely globalize as did cloud.
Matthew Mercier: Thanks, Simon. And then so on the leverage front, I mean, just to take a little step back, I mean, hopefully, as you’ve seen, we’ve made some considerable progress. You go back a year ago, we were at 7 — a little over 7 times. We’re now at a reported 6.1 times, so a full turn of leverage that we’ve taken out in the last year. Thanks to all the work and execution that the broader team has done. We’ve continued that. As Greg’s team, even subsequent to the quarter, we brought in another $500 million of proceeds from some additional JV activities as well as a transaction within our digital core REIT, so showing the diversity of capital sources we have. We’re going to continue to see as a result of the strong operating fundamentals, continue to increase our overall EBITDA and we’re now sitting at approximately $3 billion of liquidity.
So we’re well on our way and we feel confident about being able to achieve our goal of getting down to 5.5 times leverage this year. And I think, we’ve done a lion’s share of the work. So we’ll continue to execute and feel pretty good about it.
Operator: Thank you. And our next question today comes from Ari Klein with BMO Capital Markets. Please go ahead.
Ari Klein: Thanks and good afternoon. Yeah. I guess one of your larger customers is at risk of a potential ban in the U.S. Can you maybe talk a little bit about how you perceive the risks around that and maybe the potential mark-to-market opportunity if it came to that?
Andrew Power: Hey. Thanks, Ari. So on all scenarios, we don’t want to speak to confidential customer information whatsoever. Obviously, anyone that’s picked up a newspaper can refer to the scenario you’re talking about. Two comments, first one, which is just from the cheap seats, I would — my personal opinion is not to jump into any draconian conclusions on outcomes just yet. There’s a lot of innings left in that game and a lot of outcomes that could happen. So I wouldn’t drunk to a doomsday scenario for digital under the — depending what plays out in the ensuing months. And even under that scenario, I would group them among all of our hyperscale customers that have maximized the pricing curve when markets were much softer and have contracts that are like all our hyperscale customers, some of the best contracts on the books in terms of markup opportunities.
Certainly on the south of 100 side rather than the north of 100 side by and large. So if the doomsdays are coming in this area was to play out, which I’m discounting, we would have some churn to refill, but probably couldn’t come at a better time with a better mark-to-market opportunity for the company.
Operator: Thank you. And our next question comes from Matt Niknam with Deutsche Bank. Please go ahead.
Matthew Niknam: Hey, guys. Thank you for taking the question. Just bigger picture question. With pricing seeing the type of growth it’s seeing, supply chain constraints that I think largely plagued the industry a couple of years back are now largely resolved. Can you help us frame what you’re seeing in terms of new hyperscale builds that are in source relative to outsource to partners like yourself? And I guess more importantly, how digital can enhance the utility it offers its larger customers in what’s looking like a firmer pricing backdrop that’s likely to persist for some time? Thanks.
Andrew Power: Hey, Matt. So I would not characterize the world of supply constraints or just hindrances to supply as being in the rearview mirror in general. And maybe we’re not talking about the proverbial waiting for your refrigerators COVID supply chain equivalent, but the friction to supply, whether it is power transmission, power generation, supply chains on data center components or just positions in queue for production or components for substations, broader sustainability concerns, nimbyism in general, that friction is existing and it’s happening in a backdrop where I think we can add more and more value to our customers than probably ever before. And even despite historical preferences or too often do-it-yourself, I think by and large, the customer base is seeing having the benefit of a global outsource trusted partner with 20 years of experience operationally delivery wise and really turning to digital in their times of need and really in a time where it could be continuing of urgency around those capacity blocks.
And that’s certainly been highlighted in the Northern Virginia market, but I think that’s a broader Americas phenomenon and a growing global phenomenon.
Operator: Thank you. And our next question today comes from Michael Elias with TD Cowen. Please go ahead.
Michael Elias: Great. Thanks for taking the questions and congrats guys on a record leasing quarter. Just a quick one from me. I know it’s been a while since you guys have done an acquisition. Maybe for Andy or Greg, curious how you’re thinking about the potential for M&A, particularly given where your stock is trading right now? Thank you.
Andrew Power: Going to Greg on that one, Michael. Thank you for the compliment.
Gregory Wright: Yeah. Thanks, Michael. Look, I think right now our appetite for acquisitions unless they’re smaller tuck in strategic acquisitions. Michael, I think we’ve discussed this before, it’s not that great right now. When we look across most markets, we think we already have the footprint and the product and the team to continue to drive our business and succeed. And as you know, most of our legacy M&A activity was either gaining access to markets, to product or to teams in select markets where we didn’t have a real presence. We don’t have nearly as much of that today, particularly when you look across the Americas and EMEA. Over time, when we continue to look in markets through APAC to potentially grow, yes, but there’s not a lot of those platforms, if you will, for example, there’s not the logical interaction sitting in APAC for us to try to do a strategic transaction.
So while you never say never, I think we look at things today and we — Matt and Andy and the team laid out where we are in our development yields and the like. And you look at this on a risk adjusted basis and we still prefer right now at least given current conditions to buy land and build organically. And we think that’s a better risk adjusted return than what multiples would imply in the M&A market. So I don’t think you’re going to see a lot. But again, you never say never.
Operator: Thank you. And our next question comes from Nick Del Deo with MoffettNathanson. Please go ahead.
Nick Del Deo: Hey. Thanks for taking my question. Andy, earlier you said that you’re not going to chase demand into unproven markets and what you’re seeing a fair bit of demand today. I guess what sort of thresholds would those markets have to cross before they might become interesting in your eyes, especially if power constraints in key markets remain exceedingly tight or even get worse or are they like so far down the list of priorities that we really shouldn’t be thinking about them?
Andrew Power: Yeah. Thanks, Nick. So I think if you looked at our strategy, we’re focused on supporting workloads, be it enterprise, digital transformation or hybrid or hyperscale cloud or AI in markets with robust and diverse demand in supporting applications with latency and locational sensitivity. The cloud has been around for a long time and did not put AZs in every single NFL city in America or its equivalents around the globe. They picked locations where GDP population, infrastructure and data are essentially there, which I think lends itself up to greater longevity and sustainable growth in our asset class and our strategy and our business. Now, there’s markets that have been added to that list over time. They didn’t get chiseled in stone and put away on a shelf years and years ago.
But so I think new markets for us would have to give us the similar conviction we have investing in our core markets to want us to go there. So that could happen. That’s certainly could happen in a rapidly changing world with power becoming such a precious resource as well — as well as other precious resources. But anything we’re thinking about is investing and we’re not in this risk trade. We’re investing in this for the long-term, for long-term sustainable growth. And we’re fortunate if you can look at our newly tweaked and disclosure on our development cycle, we’ve got north of 3 gigawatts of growth in land capacity or shell capacity in those core markets. So we’ve got a lot of runway to harvest that demand before even feeling the urge or urgency to chase into less proven markets.
Operator: Thank you. And our final question today comes from Erik Rasmussen at Stifel. Please go ahead.
Erik Rasmussen: Yeah. Thank you for taking the question. Obviously, North America very strong, the greater than 1 megawatt. And I think based on your commentary, a lot of that was AI driven. And then also, it seems like it’s going to — AI will sort of follow a similar pattern as we saw with cloud. So would you expect — I mean, I wouldn’t expect similar levels of quarterly leasing, but would you expect sort of similar outperformance throughout the year in North America, especially the greater than 1 megawatt based on sort of the other regions. And I just want to get a sense of sort of how the year could be shaping up in terms of the bookings. Thanks.
