DataBank Strongly Positions Itself with New Financing
Expansion of the flexible financing vehicle allows company to accelerate construction projects and meet surging demand for data center capacity
Based in Dallas, DataBank, a prominent provider of enterprise-class edge colocation, interconnection, and managed cloud services, has successfully upsized its existing credit facility from $725 million to a robust $1.6 billion. This strategic move aims to finance ongoing and future data center construction projects, enabling the company to meet the increasing demand for data center capacity.
The fresh infusion of capital will facilitate the development of more than 100 megawatts (MW) of data center capacity in key markets. These include regions like Northern Virginia, Dallas, Denver, Minneapolis, and Salt Lake City, where the demand for data services continues to grow exponentially. Notably, the lending facility was oversubscribed, with participation from 20 leading digital infrastructure lenders, demonstrating strong confidence in DataBank's future.
Alongside the expansion of the credit facility, DataBank has benefited from a reduced interest rate and an extended maturity date. This ensures a long-term, scalable, and attractively priced source of capital that aligns with the rising demand across its operational footprint.
This financing round marks DataBank's fourth foray into green financing, following a recent $1.1 billion hyperscale asset securitization. This green loan status is noteworthy as the associated facilities are designed to meet specific Power Usage Effectiveness (PUE) metrics and adhere to DataBank's own stringent water conservation and carbon reduction standards. The pursuit of these green initiatives highlights DataBank's commitment to achieving carbon neutrality by the year 2030.
Kevin Ooley, the President and CFO of DataBank, expressed enthusiasm about the new financing opportunities, stating, "By adding new markets and facilities to this financing vehicle, we're able to accelerate our capital expenditure timeline and meet the growing demand from our enterprise, A.I., and hyperscale cloud customers. We're delighted by the ongoing support of existing and new lenders and their vote of confidence in DataBank's platform, geographic footprint, and track record of timely execution."
The transaction was facilitated by TD Securities, which served as the Administrative Agent, Joint Lead Arranger, and Joint Bookrunner. Other participants included Citizens Bank, CoBank, Deutsche Bank, Société Générale, and MUFG, who also played key roles in the arrangement.
About DataBank
DataBank specializes in helping large enterprises, technology firms, and content providers ensure their data and applications are managed securely and are always operational. Recognized by Deloitte and Inc. 5000 for its rapid growth, DataBank operates over 65 high-performance computing (HPC) ready data centers across more than 25 markets, including 20 interconnection hubs. This expansive infrastructure provides seamless access to a myriad of cloud solutions.
In distinguishing itself in a competitive market, DataBank marries their infrastructure with vital services such as contract portability, managed security, compliance support, and a commitment to 100% uptime availability. These elements empower clients in their journey toward a limitless digital future.
For more information about DataBank, one can follow them on LinkedIn or subscribe to their YouTube channel for the latest updates. Additionally, those interested in touring their facilities can reach out to their team directly or visit their official website.
Frequently Asked Questions
What is the purpose of the new financing raised by DataBank?
The financing is primarily aimed at supporting ongoing and future data center construction projects to meet rising demand.
How much has DataBank upsized its credit facility?
DataBank has upsized its credit facility from $725 million to $1.6 billion.
What are the environmental highlights of DataBank's new financing?
The financing qualifies as a green loan, as the facilities will adhere to specific Power Usage Effectiveness (PUE) metrics and DataBank's criteria for carbon emissions reduction.
Who participated in DataBank's financing round?
Twenty leading digital infrastructure lenders participated, affirming confidence in DataBank’s future prospects.
What sectors does DataBank cater to?
DataBank serves a range of sectors, including enterprise, artificial intelligence (A.I.), and hyperscale cloud customers, providing comprehensive managed services.
