DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed cloud services and North America’s largest data center company, announced the issuance of $456 million in secured notes, marking its fourth securitization since 2021 and its inaugural green financing endeavor. This brings the total securitized portfolio to $2.16 billion of investment-grade bonds.
The proceeds from the financing will be fully allocated to refinancing a previous bridge loan used for the acquisition of four data centers in the Houston market from CyrusOne in 2022, as well as for further development of data center capacity across the DataBank platform. The issuance garnered significant oversubscription and saw participation from both repeat and new investors, underscoring strong support for DataBank’s strategic initiatives.
To qualify as a green bond, the facilities being refinanced had to meet stringent sustainability criteria related to water conservation, carbon emissions reduction, and low Power Usage Effectiveness (PUE). These projects, along with others underway across DataBank’s portfolio, align with the company’s ambitious goal of achieving carbon neutrality by 2030.
Kevin Ooley, President & CFO of DataBank, remarked, “This financing not only underscores DataBank’s commitment to sustainability and efficiency but also reflects the substantial growth potential ahead of us, as well as the value and stability of our portfolio’s earnings.” He emphasized the endorsement from investors, highlighting confidence in DataBank’s strategy, footprint, and execution capabilities.
This announcement follows three previous securitizations and a $2.2 billion recapitalization led by SwissLife Asset Management in 2022. DataBank currently operates the largest portfolio of data centers in the U.S., comprising 65+ data centers and 20 major interconnect locations across 27+ metro markets.
Last year, DataBank previously raised $533 million of capital to build new data centers, through a combination of debt and equity. In an exclusive with Africa Hyperscalers, DataBank CEO, Raul Marytnek discussed the surging demand for data centers propelled by the increasing need for Artificial Intelligence applications and the company’s commitment to build new data center facilities for this boom.
