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DataBank secures $725M credit facility for data center expansion

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In Short:

DataBank, a provider of edge colocation and managed cloud services, secured a new USD 725 million credit facility to fund expansion and construction projects in key markets like New York, Denver, Minneapolis, and more. This green financing is supported by a consortium of digital infrastructure banks and aligns with DataBank’s goal of achieving carbon neutrality by 2030. The company plans to meet the increasing demand for data center capacity, especially for AI applications, more quickly with this new credit facility.

DataBank Secures USD 725 Million Credit Facility to Fuel Data Center Expansion

DataBank Secures USD 725 Million Credit Facility to Fuel Data Center Expansion
Edge colocation and managed cloud services provider DataBank announced the securing of a new USD 725 million credit facility. The new capital will fund ongoing expansion and future data center construction projects across key markets. This includes the expansion in existing markets on its campuses in New York, Denver, Minneapolis, Salt Lake City, and Dallas, as well as the establishment of new campuses in Northern Virginia and Atlanta.

Green Financing Focus

Supported by a consortium of 14 digital infrastructure banks, with TD Securities as the Administrative Agent and Joint Lead Arranger, the facility provides an attractively priced, long-term solution to meet the escalating demand for capacity within DataBank‘s footprint, the company said.

This marks DataBank‘s second green financing, following closely after the February 2024 Green Bond issuance. To qualify as a green loan, the funded facilities must adhere to sustainability criteria focused on water conservation, carbon emissions reduction, and low Power Usage Effectiveness (PUE). These efforts align with DataBank‘s goal of achieving carbon neutrality by 2030.

Accelerating AI Demand

“New and emerging AI applications have created unprecedented demand for DataBank‘s data center capacity,” said DataBank. “This new credit facility will allow us to meet that demand more quickly by shortening financing and construction timelines across all our campuses, but especially as we ramp up activity in the new ones we’ve announced in Northern Virginia and Atlanta.”

Recent DataBank Acquisitions

In November 2023, DataBank acquired an 85-acre campus in Culpeper, Virginia, capable of supporting up to 192 MW and 1.4 million gross square feet of data center space. This acquisition was swiftly followed by the purchase of a 95-acre campus in Atlanta, capable of accommodating another 120 MW and 1 million gross square feet of data center space.

DataBank said, once fully operational, these facilities will nearly double its current portfolio, which spans over 65 facilities across 27 metros.

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