Mitsubishi UFJ Financial Group (MUFG) closed $1.9 billion in debt financing for EdgeCore Digital Infrastructure, conducted in conjunction with its owner, Partners Group, a global private markets firm acting on behalf of its clients, to fund scalable development of a data center campus in Mesa, AZ. This project represents EdgeCore’s first data center financing in the rapidly expanding Phoenix market under Partners Group ownership.
The financing includes a limited-recourse senior secured term loan, a revolving senior secured letter of credit facility and an uncommitted accordion feature that will fund further development. MUFG acted as a coordinating lead arranger, joint bookrunner and administrative agent on the transaction.
“MUFG is proud we could support EdgeCore in the leading, structuring and execution of this very successful transaction,” Nanda Kamat, head of infrastructure finance at MUFG, said. “The deal was more than two times oversubscribed, demonstrating the strong sponsorship provided by Partners Group.”
“This was a milestone transaction for EdgeCore,” Julie Brewer, SVP of finance at EdgeCore Digital Infrastructure, said. “We value our lending relationship with MUFG and look forward to working with them in the future as we continue to prioritize sustainable construction and business practices in serving our customers’ needs.”
At full build-out, EdgeCore’s LEED-designed, water-neutral campus in Mesa will be capable of supporting a minimum of 450 MW of critical load and will be engineered to meet current and future customer requirements across 3.1+ million square feet of space. The campus currently has one operational data center and two data centers totaling 206 MW under construction.
Temperature regulation at EdgeCore’s campus in Mesa utilizes an air-cooled design with an ultra-efficient closed-loop chilled water system, allowing the company to achieve a benchmark water usage effectiveness (WUE) rating of nearly zero and a power usage effectiveness (PUE) rating far below the industry average of around 1.50. As a result of these energy efficiency and sustainable water management features, financing for the project was structured as a Green Loan. This is EdgeCore’s first Green Loan and the largest Green Loan by a Partners Group portfolio company to date.
