DataBank, a provider of enterprise-class colocation, interconnection and managed cloud services, announced that it has secured a $2.0B loan for construction of the first three data centers on its new Red Oak, Texas campus.
The new loan is the company’s largest construction financing to date and will fund the build-out of the first 3 of 8 planned data centers on the campus. Those initial facilities (DFW9, DFW10 and DFW11) have already been leased and will total 600,000 square feet of data center space and 180MW of power.
The loan also fits within DataBank’s Green Financing Framework which mandates the facilities meet specific Power Usage Effectiveness (PUE) metrics and criteria for water conservation and carbon emissions reduction, all of which contribute to its goal of being carbon neutral by 2030.
“This financing, combined with existing power commitments, accelerates DataBank’s construction and delivery timelines for this campus by approximately 18 months,” said Kevin Ooley, DataBank’s president and CFO. “It ensures our customer will be able to bring critical capacity to market on time and further solidifies Dallas as a core metro for internet and A.I. infrastructure.”
This $2.0B financing follows the recent announcements of a $1.6B credit facility expansion and extension and a $1.1B hyperscale securitization, bringing the company’s total financing in the past year to $4.7B.
MUFG Bank, Ltd. was the administrative agent, coordinating lead arranger and sole bookrunner on the transaction. A strong group of leading digital infrastructure banks and institutional lenders supported the transaction as well. Davis Polk was DataBank’s legal advisor for the transaction.
