Netrality Data Centres secures $380 mn to support energy-efficiency

Netrality Data Centres, the largest, privately held owner and operator of core interconnection facilities in the U.S. has secured a $380 million sustainability-linked credit facility (“SLL”).

The SLL will fuel data centre expansion projects that embody sustainable designs and implement infrastructural measures to support the reduction of power usage effectiveness (“PUE”) levels across Netrality’s portfolio.

The SLL is comprised of a $125 million initial term loan, a $145 million revolving credit facility, and a $110 million delayed draw term loan. Interest payments on the SLL are adjusted based on Netrality achieving annual targets related to energy-efficient capital expenditures and reduction in portfolio PUE, which will be externally verified by third parties.

The SLL reinforces Netrality’s mission to enhance the energy efficiency of its existing data halls and sustainably add new data halls, equipped with robust network architectures and energy-efficient infrastructure that meets critical power utilisation goals. Qualifying capital expenditures defined in the SLL will support the sustainable buildout of new data halls with a design PUE of less than or equal to 1.5. Cognisant of the environmental impact of its operations, Netrality will also allocate funds toward advancing existing data halls with state-of-the-art technologies and energy-efficient upgrades to optimise power consumption and lower current PUE levels.

Sustainability initiatives will include advanced waterless cooling and liquid cooling technologies, artificial intelligence “AI” enabled cooling software, high-efficiency UPS and electrical distribution upgrades, renewable energy purchases, and smart LED lighting to drive greater environmentally responsible energy usage.

Gerald M. Marshall, President and Chief Executive Officer of Netrality, said, “We are thrilled to announce the successful closing of a sustainability-linked loan, marking a significant milestone in our journey toward a more sustainable future. With this loan, we are making a significant step in accomplishing our broader environmental commitments, encompassing carbon emission reductions, energy efficiency, and responsible water usage. In addition to refinancing a portion of our existing debt facilities, the loan plays a pivotal role in enabling the expansion of our portfolio, meeting the ever-growing demands for capacity and connectivity in an environmentally conscious manner.”

Josh Maes, Chief Operating Officer of Netrality added, “The objectives outlined in the sustainability-linked loan align seamlessly with our broader environmental, social, and governance (“ESG”) strategies implemented to support the sustainability initiatives of our stakeholders, from our valued customers to our debt and equity investors. This commitment underscores our dedication to operate in harmony with ESG principles and prioritise our environmental stewardship.”

Lana Feteiha, of Societe Generale’s Sustainable Finance team said, “This was an especially gratifying deal for Societe Generale to work on, partnering with a leading data centre company on a financing solution that will spur the expansion of critical technology infrastructure in a more energy efficient, sustainable manner.”

“TD Securities was pleased to support Netrality as a Sustainability Structuring Agent on the sustainability-linked credit facility. Decarbonisation of digital infrastructure is critical to advancing the low-carbon economy and Netrality’s commitment to creating sustainable data centre environments furthers this objective,” Amy West, Global Head of ESG Solutions, TD Securities, commented.

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