DataBank establishes $725 mn financing facility to support the next expansion phase

DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed cloud services, has established a new $725 million credit facility with which to finance its ongoing and future data center construction projects.

The new capital will fund ongoing expansion in existing markets including on its campuses in New York, Denver, Minneapolis, Salt Lake City, and Dallas. The facility is supported by a strong bank group of 14 leading digital infrastructure banks including TD Securities engaged as the Administrative Agent and Joint Lead Arranger. The financing provides an attractively priced source of capital that is a long-term and scalable solution to meet accelerating demand for capacity within DataBank’s footprint.

This also will represent DataBank’s second green financing, following closely on the heels of the February 2024 Green Bond. In order to qualify as a green loan, the facilities being financed will meet specific sustainability criteria for water conservation, carbon emissions reduction, and a low Power Usage Effectiveness (PUE). These projects, as well as others underway across DataBank’s portfolio, are all contributing to its goal of being carbon neutral by 2030.

“New and emerging A.I. applications have created unprecedented demand for DataBank’s data center capacity,” said Kevin Ooley, DataBank’s President and Chief Financial Officer. “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.”

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