DataBank Expands Credit Facility to $1.6bn

DataBank has more than doubled one of its credit lines to fuel its data center build-out.

The company announced this week that it has upsized its existing $725 million credit facility to $1.6 billion in order to finance its ongoing and future data center construction projects. 

The new capital will fund the ongoing development of over 100MW of capacity in major data center markets such as Northern Virginia, Dallas, Denver, Minneapolis, and Salt Lake City.

Twenty digital infrastructure lenders participated in the oversubscribed facility, including all 14 that participated in the initial vehicle.

DataBank also noted it was able to reduce its overall interest rate and extend the maturity date on the instrument.

“By adding new markets and facilities to this financing vehicle, we’re able to accelerate our capital expenditure timeline and meet the growing demand from our enterprise, AI, and hyperscale cloud customers,” said Kevin Ooley, DataBank’s president and CFO. “We’re delighted by the ongoing support of existing and new lenders and their vote of confidence in DataBank’s platform, geographic footprint, and track record of timely execution.”

TD Securities was the administrative agent, joint lead arranger, and joint bookrunner in the transaction. Citizens Bank, CoBank, Deutsche Bank, Société Générale, and MUFG were joint lead arrangers and joint bookrunners for the transaction. Jones Day was DataBank’s legal advisor for the transaction.

Founded in 2005, DataBank operates more than 65 data centers across the US in 25 metro markets. The company recently closed more than $1bn in asset-backed securitization funding.