The US Securities and Exchange Commission (SEC) has cleared data center firm Equinix of accounting malpractice.

In March, short seller Hindenburg released a report accusing the colo provider of "major accounting manipulations."

As a result, the SEC subpoenaed Equinix, requesting information on matters related to a short seller report. The Northern District of California (NDCA) also took an interest in the company following the report.

Cooperating with both investigations, the company had always claimed its accounting practices were transparent and accurate, and this week the SEC ended its involvement in the matter. The US Attorney’s Office for the NDCA also seems to have dropped the matter.

"On November 19, 2025, the Company received correspondence from the SEC indicating that the agency had concluded its investigation and does not intend to recommend an enforcement action," Equinix said in an SEC filing this week. “The company also does not expect any further related action from the NDCA.”

According to Hindenburg’s March 2024 report, Equinix overstated its adjusted funds from operations (AFFO), a key profitability metric for REITs.

Hindenburg claimed that when Equinix became a REIT in 2015, it began using AFFO as a key metric to determine executive bonuses, and that same year reported a sudden 47 percent drop in maintenance CapEx, leading to a 19 percent increase in the AFFO.

The short-seller also said that the company has been misclassifying "maintenance CapEx" as "growth CapEx," which in turn makes the company's maintenance costs look lower and Equinix seem more profitable. This allegedly enabled the company’s executives to receive $476m in bonuses between 2015-2023, Hindenburg said.

Following the release of the report, Equinix launched an investigation, carrying out an internal audit that it found its accountancy practices to be “accurate.”

The report also led to a class action lawsuit from shareholders, alleging the company had misled investors. Equinix paid $41.5m to settle.