DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed cloud services, has raised $533 million of capital through a combination of debt and equity to fund the construction of new data centres and meet the fast-growing need for capacity driven by the rise of artificial intelligence applications.
The financing consists of two separate transactions: $188M in equity raised from existing and new investors, and a $345M construction loan for a new data centre being developed in the Atlanta market.
Of the $188M equity raise, $138M came from existing investors in a pre-emptive rights offering and the remaining $50M of the equity was provided by new equity investors. The $345M loan was provided for the construction of DataBank’s new ATL4 facility, a single-tenant, fully leased data centre located about 20 minutes outside downtown Atlanta and expected to open in Q3 2024. Once this facility has been completed, DataBank will secure 100% load-following renewable power through Georgia Power’s solar-based Renewable Energy Certificates. This supports DataBank’s company-wide goal of net zero carbon emissions by 2030.
First Citizens, MUFG, and CoBank acted as Joint Lead Arrangers and Joint Bookrunners for the debt transaction with First Citizens as the administrative agent. Jones Day served as legal counsel. The financing was completed with attractive terms including a favourable loan-to-cost ratio.
“This new financing will allow us to continue bringing important capacity to market to meet extremely high demand for data centre space and power,” said Kevin Ooley, DataBank’s President & CFO. “The favourable loan terms, and the pre-emptive rights participation of existing equity investors so soon after our recapitalisation, reflect the ongoing confidence of our investment partners and their willingness to seize the growth opportunity of the A.I. era ahead of us.”