#United States #Dallas #DataBank #Cloud Services #Securitization

DataBank Secures Significant Funding Through Hyperscale Asset Securitization

DataBank, a frontrunner in enterprise-class edge colocation and cloud services, recently announced a remarkable achievement: the issuance of $1.1 billion in secured notes through a newly formed master trust. This marks the company's fifth overall securitization since 2021, elevating its total securitized portfolio to $3.23 billion in investment-grade bonds.

The significance of this transaction goes beyond the impressive figures; it also represents DataBank's first green bond financing specifically aimed at hyperscale facilities. Notably, this new asset-backed security (ABS) trust stands out as the first of its kind dual-rated by Standard & Poor's (SP) and Moody's, underlining its credibility and appeal to a wide spectrum of investors.

Purpose of the Securitization

The funds raised through this securitization will primarily be allocated to refinancing existing loans associated with the construction of several key DataBank facilities—namely, ATL4, IAD3, and LGA3. Additionally, these resources will support the expansion of DataBank's data center capacity throughout its U.S. operations.

What sets DataBank apart in the crowded data center market is its unique positioning. The company caters to an extensive range of clients, from over 2,500 enterprise customers to growing hyperscale providers. This flexibility is presented through DataBank's renowned Universal Data Hall Design, equipped to accommodate a variety of operational requirements and growth trajectories.

Investor Confidence and Market Demand

DataBank's latest initiative has garnered overwhelming interest from the investment community, leading to the pool of 38 unique investors expressing strong support for the company's strategic plans. Kevin Ooley, President and CFO of DataBank, articulated that this financing is a testament to DataBank's adeptness in satisfying the needs of both hyperscale and enterprise clients. He emphasized, "This reflects the reliability and compelling nature of our portfolio, as well as our ability to execute effectively across our entire asset base, gaining investor confidence vital for our future growth."

This securitization comes on the heels of previous fundraising efforts, including a $456 million Green Bond in February 2024 and $715 million of notes in March 2023. These moves mirror DataBank's ongoing commitment to evolve in a sector characterized by rapid technological advancements and fluctuating market demands.

Strong Market Position

Currently, DataBank boasts the largest portfolio of data centers in the United States, featuring over 65 data centers and 20 primary interconnect locations across more than 25 metropolitan markets. The robust rating provided to the newly issued Class A-2 Notes by SP Global Ratings (A-) and Moody's (A3) further demonstrates the stability of DataBank's operational performance and market position.

The partnership with major financial institutions, such as Deutsche Bank Securities, Guggenheim Securities, and TD Securities, showcases DataBank's strategic approach to harnessing financial resources effectively to fuel its growth trajectory.

About DataBank

DataBank remains dedicated to ensuring that large enterprises and content providers maintain seamless and secure access to their data and applications. Recognized by agencies such as Deloitte and Inc. 5000, DataBank continuously reinforces its reputation as a fast-growing company within this sector, offering infrastructure and operational solutions optimized for the demands of the artificial intelligence era.

With a commitment to uptime availability, compliance, and superior customer support, DataBank empowers businesses to leverage its vast network of HPC-ready data centers to foster a digital landscape without limitations. For further inquiries or to explore its facilities, interested parties can learn more through DataBank’s official channels.