EQIX
Equinix, Inc.
Is EQIX Halal?
Data-center infrastructure and colocation are generally permissible, but current debt and finance-lease obligations exceed the examined asset-based limits.
What You Should Know
Equinix's March 31, 2026 Form 10-Q reports debt and finance-lease obligations/assets of 53.59%, cash plus short-term investments/assets of 7.47%, receivables plus cash/assets of 6.04%, and disclosed interest income/revenue of 1.68%. Its data-center colocation, interconnection and managed-infrastructure business is generally permissible at the activity level, but the filing identifies government contracts and a broad customer base without allocating a universal prohibited-revenue numerator. The examined FTSE Yasaar, MSCI and Malaysia asset-ratio calculations fail on leverage; market-cap methods are not estimated without a reproducible historical series.
⚠️ Concerns
- •REIT structure uses substantial debt and finance leases; current obligations are 53.59% of total assets
- •General-purpose infrastructure serves cloud, media, financial-services, government and other customers whose uses readers may assess differently
- •Interest income from cash, short-term investments and the AMER 2 Loan requires methodology-specific treatment
- •AI-driven demand, power, water, construction, joint-venture and cybersecurity risks remain material
- •REIT distributions and purification should be handled under the scholar or methodology the investor follows
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
21,919 / 40,898
3,054 / 40,898
2,470 / 40,898
41 / 2,444
- Financial
- Fails
- Overall
- Fails
Debt is 53.59%, above the examined 33.333% FTSE asset limit. Liquidity is 7.47%, receivables plus cash are 6.04%, and disclosed interest income is 1.68%; the debt failure is decisive.
- Financial
- Fails
- Overall
- Fails
Debt is 53.59%, above the examined MSCI total-assets limit, while liquidity is 7.47% and receivables plus cash are 6.04%. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 53.59%, above the examined 33% Malaysia SAC financial limit; identifiable liquidity is 7.47%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Equinix operates data centers and provides colocation, interconnection and managed infrastructure services. Data-center infrastructure and leasing are generally permissible at the activity level, while the company's REIT structure, debt financing and customer-use mix require qualitative review.
Limitation: The filing reports revenue by service and geography but does not allocate a universal prohibited-revenue numerator by customer industry, government use, financial-services use or downstream application; no blanket zero-concern claim is made.
Purification
Equinix discloses interest income but does not prescribe a scholar-approved purification percentage. Readers should follow the qualified scholar or methodology they use rather than applying an invented fixed rate.
Inputs, assumptions and primary sources
- Inputs use Equinix's March 31, 2026 Form 10-Q; amounts are USD millions.
- Debt uses carrying values of senior notes ($19,591 million), mortgage and loans payable ($29 million), and finance lease liabilities ($2,299 million). Operating lease liabilities are not entered as conventional debt.
- Cash uses $1,362 million of cash and cash equivalents. Interest-bearing securities use $1,692 million of short-term investments; cash equivalents are not double-counted.
- Receivables use $1,108 million of accounts receivable, net. Contract assets and other current assets are not added.
- Quarterly revenue is $2,444 million and disclosed interest income is $41 million, primarily related to cash, cash equivalents, short-term investments and the AMER 2 Loan. No fixed purification percentage is prescribed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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