#USA #Toronto #Manulife #TD Securities #Serverfarm

Serverfarm Expands Credit Facility to Meet Rising Hyperscale Demand

On December 18, 2024, Serverfarm, a prominent global data center developer and operator, announced a significant increase in its credit facility, now totaling $1.637 billion. This expansion, spearheaded by TD Securities, comes as a response to the skyrocketing demand for hyperscale capacities essential for cloud and artificial intelligence implementations. The new capital injection amounts to $747 million, designed to cater specifically to the needs of hyperscale tenants.

The surging interest in high-quality hyperscale colocation capabilities has notably intensified in North America, where there is a considerable limitation in large capacity provision. Serverfarm, with its robust portfolio of secured land, supply chain commitments, and award-winning design, construction, and operational teams, is uniquely situated to meet these high demands promptly and on a large scale. Their recent announcements, such as the 500 MW+ Houston development, showcase their commitment to rapid growth and responsiveness to client demands.

Avner Papouchado, CEO of Serverfarm, expressed enthusiasm over the additional capital, stating, "We are pleased to have access to more funds to support Serverfarm’s strong track record of delivering short-term capacities to key clients. The rapidly increasing demand for cloud and AI solutions, combined with long-term commitments from hyperscale clients, is driving growth across Serverfarm’s portfolio."

Moreover, the expansion of the credit facility has brought in seven new lenders to the existing bank consortium, which now totals 19 lenders. This indicates a robust interest and confidence in Serverfarm's business model and growth prospects. Recep Kendircioglu, Global Head of Infrastructure at Manulife Investment Management, noted the importance of maintaining strong, strategic partnerships with financing partners to continue driving Serverfarm’s expansion efforts. "The substantial interest we have received from lenders is a testament to the strength of the Serverfarm platform and the significant growth potential of the company,” Kendircioglu commented.

Serverfarm’s solutions are tailored for crucial hyperscale, webscale, technology, and network clients, providing colocation, data center design, and IT infrastructure management services through their proprietary InCommand DMaaS technology. This comprehensive approach allows Serverfarm to meet the unique demands of this rapidly evolving sector effectively.

In a broader context, the financial backing from global partners like Manulife underscores the necessity and opportunity within the hyperscale market, fueled by increasing cloud adoption and AI integration among businesses. The continual advancements and expansions from Serverfarm reflect a proactive strategy to capitalize on these growing trends in the technology landscape, ensuring they remain a competitive leader in data center solutions.

For additional information on Serverfarm and its services, one can visit serverfarmllc.com. To explore more about Manulife's wealth and asset management services, please refer to manulifeim.com.

This strategic financial maneuver highlights not only Serverfarm’s ambitions but also the thriving market for data infrastructure, showcasing a future where rapid scalability and innovation will define success in the technology services sector.