DataBank Creates $725M Facility For Data Center Growth
Data center specialist DataBank has established a $725M credit facility to finance its data center construction projects, including the expansion of its campuses in New York, Denver, Minneapolis, Salt Lake City and Dallas.
In October, DataBank acquired a campus in Atlanta capable of supporting 120 megawatts of data center capacity. In November, it acquired an 85-acre campus in Culpeper, Virginia, that will support as much as 192 MW.
“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,” DataBank President Kevin Ooley said in a statement.
The rise of artificial intelligence, which depends on massive amounts of computing power, has spurred demand for data centers. U.S. data center capacity totaled 17 gigawatts at the end of 2022 and is expected to expand to 35 GW by 2030, according to Newmark. Synergy Research forecasts that worldwide data center inventory will triple within six years.
“The data center industry is continuing to experience explosive growth in demand, which is leading to completely sold-out primary markets, secondary market expansion and the development of newer tertiary markets,” Andy Cvengros, a managing director at JLL and the firm’s U.S. data center lead, told Bisnow last summer.
Major investors have taken an interest in the property type as well. In February, Starwood Capital Group bought a 50% stake in Echelon Data Centres for $850M in a deal that will fund Echelon's expansion.
TD Securities, Citizens Bank, CoBank, Deutsche Bank, First Citizens Bank and Société Générale, among others, participated in the DataBank deal as joint lead arrangers of the credit facility.
