DataBank Upsizes Financing to $1.6 Billion for Expansion of Data Center Capabilities

DataBank Expands Financing for Future Growth

DataBank, a prominent enterprise-class edge colocation, interconnection, and managed cloud services provider, has recently announced a substantial expansion of its financing capabilities. By increasing its existing credit facility from $725 million to an impressive $1.6 billion, DataBank is poised to accelerate its data center construction projects and effectively respond to the surging demand for data services across the United States.

This strategic move comes at a time when digital infrastructure is increasingly stretched due to the exponential growth in data consumption and cloud services, particularly from enterprise, AI, and hyperscale cloud clients. By securing new capital, DataBank is set to expand its operational capabilities significantly, developing over 100MW of capacity in critical markets such as Northern Virginia, Dallas, Denver, Minneapolis, and Salt Lake City.

The response from lenders has been overwhelmingly positive, with the financing request being oversubscribed. A total of 20 leading digital infrastructure lenders contributed to this funding initiative, reaffirming their confidence in DataBank's operational expertise and the viability of its market strategy. This not only enhances the amount of capital available for upcoming projects but also provides DataBank with a competitive edge in the industry.

An essential aspect of this financing is DataBank's commitment to sustainability. This new capital marks the company's fourth instance of green financing, aligned with the company’s goal to achieve carbon neutrality by 2030. Importantly, each of the facilities involved will adhere to mandated Power Usage Effectiveness (PUE) metrics, ensuring energy-efficient operations that also prioritize water conservation and reduce carbon emissions.

Kevin Ooley, DataBank's President and CFO, expressed enthusiasm regarding this development: “By adding new markets and facilities to this financing vehicle, we're able to accelerate our capital expenditure timeline and meet the growing demand from our enterprise, AI, and hyperscale cloud customers.”

He added, “We’re delighted by the ongoing support of existing and new lenders and their vote of confidence in DataBank’s platform, geographic footprint, and track record of timely execution.”

The administrative aspects of this transaction were managed by TD Securities, which served as the Administrative Agent, Joint Lead Arranger, and Joint Bookrunner, underscoring the expertise and professionalism guiding this substantial funding initiative. Other prominent banks and institutions also took part in this financing, further emphasizing the collaborative nature of this endeavor.

This development positions DataBank not only to enhance its service offerings but also to strengthen its market presence in the competitive landscape of cloud services and data management. As DataBank continues its journey of expansion, the implications for operational efficiency and service quality will undoubtedly resonate across its clientele, thereby reinforcing its mission to provide reliable, secure, and scalable services even as the industry continues to evolve.

For more information about DataBank’s services and to stay updated on its expansion plans, you can follow them on LinkedIn or subscribe to their YouTube channel. Additionally, potential clients interested in touring a facility can visit DataBank’s official website or contact them directly at 1(800) 840-7533.