Charles Meyers: Sure, yes. Generally, I think that the book-to-bill, we have not seen any extensions of book-to-bill. I think in terms of quote to book, in other words, what’s the sales cycle, I think we’re seeing some anecdotal evidence of this sort of measure twice, cut once. But again, the team has — is seeing strong conversion rates, solid pipeline and continue to feel good overall. So haven’t seen any material change, although again, anecdotal evidence that you’re seeing a little just caution in terms of customers really making sure that they’re buying exactly what they need in the right amounts. And that’s not surprising in sort of the macro kind of environment that we have. And then, Keith, I don’t know if you have any further comment on book-to-bill and then xScale.
Keith Taylor: Yes. The only other thing I would say in book-to-bill, last year, there were some supply chain constraints. We don’t foresee any meaningful amount of that this year as it relates to the installation of our customers, so continue to be optimistic about that. And as it relates to xScale, I was just saying in the prepared remarks, you can see that there’s a tremendous amount of capacity that we’re building across our xScale sort of portfolio. And it’s exciting. And so as that relates to not only the opportunity, and not counter to Simon’s maybe worried bit, we’re seeing the — a lot of volume opportunities sitting inside the xScale business. So that’s good. And then from a price point, no surprise, costs have moved up and pricing, therefore, has moved up to recover that cost and get the appropriate returns.
So, I feel good from both perspectives. One, there’s the volume that’s there. There’s the activity that we’re building to support that volume, and we’re getting the price points and the returns that we feel are appropriate for this juncture.
Operator: Our next question will come from Frank Louthan with Raymond James. Your line is open.
Frank Louthan: Can you walk us through a little bit of the difference between sort of what’s the pass-through from the revenue side, from the power increases versus what flowed through from the price hikes that you put in this year? And what had the biggest impact from the price increases? Was it more the base rents or the cross-connects? How would you characterize that?
Charles Meyers: Sure, yes. I mean, the power pass-through is a really easy one to think through. It’s on the order of $350 million on the revenue line and on the expense line. So — and it’s just — and that’s really what causes the 500 bp increase on the revenue line, obviously, without corresponding flow through to EBITDA. And so that impacts the EBITDA margin. But on a normalized basis, so as reported 45% guide but a normalized or excluding that 48%, which we think continues to look very good. And so — and in terms of power price increases on the rest of the portfolio, I think we’re seeing it — we’re going kind of across the board in space, power as well as in the digital services, making adjustments that we think are appropriate in the market.
And part of that is just reflecting the increasing expense environment and some of the costs inside of the business that are going up. But then part of that is also just, I think, a really strong reflection of the value we deliver to the customer. And so, I think you’re going to — you’re seeing the growth is certainly partially driven by strong pricing, and that’s pretty consistent across the space, power and interconnect.
