Keith D. Taylor
Chief Financial Officer at Equinix
Thank you, Charles, and good afternoon to everyone. To start, we had a great end to the year, finishing Q4 with healthy bookings, strong pricing, which included a nice uplift in MRR per cabinet in each of our regions and a solid forward-looking demand pipeline. We closed over 17,000 deals across more than 6,000 customers in 2022, and no single customer represents more than 3% of our MRR, highlighting the tremendous scale, reach and diversity of our go-to-market engine that continues to produce despite volatile and shifting macro conditions.
Given the weaker U.S. dollar relative to our prior guidance rates, FX has shifted from a meaningful headwind to a tailwind, which is positive, although 2023 exchange rates still remain below the average FX rates for 2022. And while we continue to remain vigilant to the challenges in the broader economy, we do remain optimistic about our business and the key demand drivers and feel we're very well positioned to grow and scale due to our industry-leading risk management efforts across procurement and strategic sourcing, power and treasury and our future-first sustainability program.
Also, the diversity and mix of our customers is benefiting us, with large established businesses constituting a majority of our revenues has greater than 80% of our recurring revenues come from companies generating $100 million or more in annual revenues. And more than 85% of our recurring revenues in the quarter come from customers deployed in three or more data centers, making Equinix a core vendor for our customers' digital infrastructure needs. Equinix remains in excellent financial health with strong liquidity positions, low net leverage, allowing us to be both strategically and operationally flexible in this current market environment.
Now as part of our larger programmatic approach to managing power costs, we initiated efforts to enhance our customer communications last fall, providing our customers insights into our efforts while continuing to protect our customers and ourselves against the rising costs through our multiyear hedging efforts.
At the start of 2023, we raised our power prices primarily in the EMEA region to recover these rising costs. While power markets remain volatile, our hedging approach meaningfully dampened the impact of the inflated energy costs for many of our customers. We expect these power price increases will generate approximately $350 million of incremental revenues and costs in 2023. And as a result, the cumulative power price increases are expected to increase our revenue growth by approximately 500 basis points.
Now despite these increases, our cost management efforts have protected both our adjusted EBITDA and AFFO on a dollar basis, but as expected, have negatively impacted our adjusted EBITDA margins for the year. We expect these higher energy costs to be transitory and should reverse course over our future yet-to-be-determined period, at which time both our gross profit and adjusted EBITDA margins will return to our targeted and expected levels. Now let me cover the highlights for the quarter. Note that all comments in this section are on a normalized and constant currency basis.
As depicted on Slide four, global Q4 revenues were $1.871 billion, up 11% over the same quarter last year, above the midpoint of our guidance range on an FX-neutral basis, largely due to strong recurring revenues led by the Americas region. We continue to enjoy net positive pricing actions in the quarter. And similar to prior quarter, price increases outpaced price decreases by a ratio of 3:1. Q4 revenues, net of our FX hedges, included an $8 million tailwind when compared to our prior guidance rates due to the weaker U.S. dollar in the quarter.
As we look forward, we expect a significant step-up in Q1 recurring revenues, largely due to strong net bookings performance and significant power price increases. Global Q4 adjusted EBITDA was $839 million or 45% of revenues, up 7% over the same quarter last year, at the top end of our guidance range due to strong operating performance. Q4 adjusted EBITDA, net of our FX hedges included a $1 million FX benefit when compared to our prior guidance rates and $7 million of integration costs.
Global Q4 AFFO was $658 million, above our expectations due to strong operating performance, including seasonally higher recurring capex and included an $11 million FX benefit when compared to our prior guidance rates. Global Q4 MRR churn was 2.2%, a derivative of disciplined sales execution, whereby we put the right customer with the right application into the right asset. For the year, MRR churn was better than expected with the average quarterly MRR churn at the low end of our guidance range. As we look forward into 2023, we expect MRR churn to remain comfortably within our targeted 2% to 2.5% per quarter range.
Turning to our regional highlights, whose full results are covered on Slides five through seven. APAC was the fastest revenue-growing region on a year-over-year normalized basis at 17%, followed by the Americas and EMEA regions at 10% and 9%, respectively. The Americas region had another quarter of strong gross bookings, lower MRR churn and continued favorable pricing trends led by our New York, Toronto and Washington, D.C. metros.
The strength in the region remains broad-based, and the acquired Antel assets in Chile and Peru have performed better than we planned. Our EMEA region delivered a strong quarter with continued healthy pricing trends and an attractive retail mix as well as record inter- 40 new logos in 2022, and we're already seeing customer interest for our Jakarta and Johor sites.
And now looking at the capital structure, please refer to Slide eight. Our balance sheet increased slightly to greater than $30 billion, including an unrestricted cash balance of $1.9 billion. As expected, our quarter-over-quarter cash balance decreased due to the significant planned increase in growth capex and real estate purchases and our quarterly cash dividend.
I said previously, we plan to take a balanced and opportunistic approach to accessing the capital markets when conditions are favorable. As such, we're happy to share that we recently priced a Japanese yen private placement, raising the U.S. dollar equivalent of approximately $600 million of debt with an average duration of greater than 14 years and a blended cost to borrow an attractive 2.2%. This transaction is expected to fund in Q1. We also executed some ATM forward sale transactions in Q4, providing $300 million of incremental equity funding when settled. Pro forma for these transactions, we have nearly $7 billion of readily available liquidity and remain very well funded to meet our ongoing cash needs.
Turning to Slide nine for the quarter, capital expenditures were approximately $828 million, including recurring capex of $80 million. In the quarter, we opened six retail projects in Geneva, Los Angeles, Osaka, Singapore, Washington, D.C. and Zurich and three xScale projects in Dublin, Sao Paulo and Osaka. We also purchased our Geneva two and Sao Paulo four IBX assets as well as land for development in London. Revenues from owned assets increased to 63% of our recurring revenues for the quarter.
Our capital investments delivered strong returns, as shown on Slide 10. Our now 158 stabilized assets increased recurring revenues by 6% year-over-year on a constant currency basis. These stabilized assets are collectively 87% utilized and generate a 27% cash-on-cash return on the gross PP&E invested. As a reminder, similar to prior years, we plan to update our stabilized asset summary on the Q1 earnings call.
And finally, please refer to Slides 11 through 15 of our summary of 2023 guidance and bridges. Do note, all growth rates are on a normalized and constant currency basis. Starting with revenues, for 2023, we expect top line revenues will step up by nearly $1 billion, representing a year-over-year growth rate of 14% to 15%. Excluding our power price pass-throughs, we expect top line revenue growth to range between 9% and 10%, above the top end of our long-term growth rates, as highlighted at our 2021 Analyst Day, reflecting the continued momentum in the business.
We expect 2023 adjusted EBITDA margins of approximately 45%, excluding integration costs. And excluding the impact of power price increases to revenues and higher utility costs, adjusted EBITDA margins would approximate 48%, the result of strong operating leverage and efficiency initiatives. We expect to incur $35 million of integration costs in 2023. 2023 AFFO is expected to grow between 9% and 12% compared to the previous year, and AFFO per share is expected to grow 8% to 10% at the top end of our long-term range from our 2021 Analyst Day.
2023 capex is expected to range between $2.7 billion and $2.9 billion, including approximately $150 million of on-balance sheet xScale spend, which we expect to be reimbursed as we transfer assets into the joint ventures and about $205 million of recurring capex spend. And finally, we're increasing the annual growth rate of our cash dividend on a per share basis to 10% due to strong operating performance. The cash dividend will approximate $1.3 billion, a 12% year-over-year increase, 100% of which is expected to be attributed to operating performance.
So let me stop here and turn the call back to Charles.
