DataBank has announced the establishment of a new $725 million credit facility to fund its current and upcoming data center construction initiatives.
The new capital will fund ongoing expansion in existing markets including on its campuses in New York, Denver, Minneapolis, Salt Lake City, and Dallas. The facility is supported by a strong bank group of 14 leading digital infrastructure banks including TD Securities engaged as the Administrative Agent and Joint Lead Arranger. The financing provides an attractively priced source of capital that is a long-term and scalable solution to meet accelerating demand for capacity within DataBank’s footprint.
This also will represent DataBank’s second green financing, following closely on the heels of the February 2024 Green Bond. In order to qualify as a green loan, the facilities being financed will meet specific sustainability criteria for water conservation, carbon emissions reduction, and a low Power Usage Effectiveness (PUE). These projects, as well as others underway across DataBank’s portfolio, are all contributing to its goal of being carbon neutral by 2030.
“New and emerging AI applications have created unprecedented demand for DataBank’s data center capacity,” said Kevin Ooley, DataBank’s President and Chief Financial Officer. “This new credit facility will allow us to meet that demand more quickly by shortening financing and construction timelines across all our campuses, but especially as we ramp up activity in the new ones we’ve announced in Northern Virginia and Atlanta.”
In November 2023, DataBank announced the acquisition of an 85-acre campus in Culpeper, VA that will support up to 192MW and 1.4M gross square feet of data center space. Just one month before that, it had announced the acquisition of a 95-acre campus in Atlanta capable of supporting another 120MW and 1M gross square feet of data center space. Once fully deployed, the expansion of the facilities on those two campuses would nearly double the current 375MW and 2.7M square feet across DataBank’s portfolio of 65+ facilities in 27 metros today.
TD Securities was the Administrative Agent, Joint Lead Arranger, and Joint Bookrunner in the transaction. Citizens Bank, CoBank, Deustche Bank, First Citizens, and Société Générale were Joint Lead Arrangers and Joint Bookrunners for the transaction with JP Morgan, Nomura Securities, RBC Capital Markets and Regions Bank joining as Joint Lead Arrangers. Bank of America and Goldman Sachs were Co-Documentation Agents. Cadence Bank and Preferred Bank supported the transaction as well. Jones Day was DataBank’s legal advisor for the transaction.
Learn more about DataBank’s Data Center on-going expansion here.
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