The funds managed by Ares Management‘s infrastructure debt strategy committed a delayed draw sustainability-linked debt facility to EdgeConneX, a global provider of data center solutions.
The new debt facility provides for a commitment of up to approximately $1 billion and will be used to refinance existing indebtedness and to fund development and construction of EdgeConneX’s growing development pipeline. Further, the facility includes a sustainability-linked margin adjustment, whereby the interest rate payable is directly correlated to EdgeConneX achieving certain pre-determined sustainability targets. These targets will be aligned to EdgeConneX’s holistic ESG sustainability strategy: “Customer, People, and Planet.” EdgeConneX has a stated goal of becoming a carbon-, waste- and water-neutral data center provider by 2030 and developing and operating a data center platform powered by 100% renewable energy.
Founded in 2009 and backed by EQT, EdgeConneX operates high-powered, purpose-built digital infrastructure for customers, ranging from hyperlocal edge facilities to hyperscale data center campuses. With more than 50 data centers located in more than 40 markets across North America, Europe, South America and Asia, EdgeConneX delivers capacity, connectivity, power and proximity in a data center platform enabling cloud, content, network and technology service providers.
“We are pleased to strengthen our longstanding relationship with EdgeConneX and EQT through this significant financing that reinforces our shared commitment to corporate sustainability and responsible investment,” Spencer Ivey, partner in the infrastructure debt strategy at Ares, said. “We believe EdgeConneX is well-positioned to benefit from strong tailwinds for energy efficient, mission-critical data centers, and we are proud to work with an innovative and purpose-driven business that furthers Ares’ focus on supporting a just energy transition.”
“This is a pivotal time for EdgeConneX, and we are excited by the support of Ares as we seek to execute on our growth plans,” Randy Brouckman, CEO of EdgeConneX, said. “This sustainability-linked financing underscores our deep commitment to provide innovative, energy efficient solutions in new and growing markets that generate sustainable value for our clients and stakeholders around the world.”
