Data center operator DataBank has successfully secured a loan of $725 million to bolster its pipeline of developments. This strategic move comes in response to the surging demand for cloud services and state-of-the-art real estate facilities, driven by the rapid expansion of artificial intelligence usage.
Kevin Ooley, the Chief Financial Officer and President of DataBank, has conveyed the company’s active involvement in debt and equity financing markets. He disclosed that the new credit facility, initially set at $400 million, aims to finance the construction of data centers for lease across the United States. The upsurge in demand for data centers, particularly in light of new and emerging artificial intelligence applications, significantly influenced DataBank’s decision to increase its credit facility limit with its lenders.
The funding, spearheaded by TD Securities, has bolstered DataBank’s access to capital for its long-term growth strategies. Ooley also indicated that the company has the potential to further expand the credit facility directly with these lenders through the loan. DataBank’s planned capital expenditures for 2021 amount to $1.25 billion, marking a substantial increase from the previous year.
The development projects in DataBank’s pipeline, with lead times ranging from 18 to 24 months, enable the company to deploy capital today for initiatives years into the future. Additionally, the company is on track to deliver 86 megawatts of power this year, with further plans for increased power in subsequent years.
Furthermore, DataBank is dedicated to sustainability, aiming to achieve carbon neutrality by 2030. The company’s portfolio, comprising more than 65 facilities in 27 U.S. metropolitan areas, aligns with specific sustainability criteria for water conservation and carbon emissions reduction, in line with its environmentally friendly practices.
Prominent financial institutions, including TD Securities, Citizens Bank, and Deutsche Bank, among others, played a pivotal role in supporting DataBank’s financing endeavours. This recent development signifies a significant milestone for DataBank and reaffirms its position as a key player in the expanding data center landscape.
The successful acquisition of this substantial loan underscores DataBank’s ongoing growth and its dedication to meeting the evolving demands of the market. It also underscores the escalating need for data center capacity, driven by the growing reliance on advanced technologies such as artificial intelligence. With this latest funding, DataBank is poised to further enhance its capabilities and meet the escalating requirements of its clients and partners.