DataBank, a provider of enterprise-class edge colocation, interconnection and managed cloud services, established a new $725 million credit facility with which to finance its ongoing and future data center construction projects.
TD Securities was the administrative agent, joint lead arranger and joint bookrunner for the transaction. Citizens Bank, CoBank, Deustche Bank, First Citizens and Société Générale were joint lead arrangers and joint bookrunners for the transaction, with J.P. 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.
The new capital will fund DataBank’s ongoing expansion in existing markets, including on its campuses in New York, Denver, Minneapolis, Salt Lake City and Dallas.
The transaction also represents DataBank’s second green financing, following closely on the heels of its 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,” Kevin Ooley, president and CFO of DataBank, said. “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.”
