While a sustainability-linked loan can be used for any purpose, the hallmark of this debt instrument is that the borrower’s performance is measured against predetermined sustainability objectives which affect the interest rate, incentivizing improved performance over time. Anubhav Raj, CFO of Aligned, explores how sustainability-linked financing will influence the data center industry in years to come.
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DigitalBridge is notable for its ability to deploy capital and capacity. That was on display this week in expansion announcements for DigitalBridge’s flagship data center platforms, DataBank and Vantage Data Centers.
Flexential has raised $2.1 billion to accelerate its growth strategy, and will use the money to deploy highly-sustainable data centers and enter new markets. Flexential is the latest data center company to use asset-backed securities to raise funds, including a green bond component.
DataBank is building a 40 megawatt facility in Ashburn’s Data Center Alley. It’s the latest project as the colocation specialist accelerates its expansion across multiple U.S. markets, backed by $330 million in funding from a recent capital raise.
Aligned has arranged $1.75 billion in sustainable financing to acquire land and expand into new markets. The package includes $1.35 billion in securitized notes that qualify as sustainable loans, the first time a secured note has met that criteria.
Sabey Data Centers has issued $175 million of securitized notes to fund the growth of its data center operations. The company has now lined up nearly $1 billion in growth capital using asset-backed securities with low interest rates.
A recent financing by DataBank breaks new ground in financing data center growth, and may help colocation and edge computing specialists raise capital using strategies previously limited to hyperscale deals.
STACK Infrastructure has lined up $400 million through the sale of securitized notes, the latest in four transactions that have raised $1.8 billion to build more data centers as it expands across U.S. markets.
The data center industry is busier than ever. With more new players entering the industry, this has meant lower pricing on large deals in the most competitive markets.
Data center developers continue to deploy more capacity, as the digital economy races to keep pace with demand for more capacity due to pandemic-driven societal shifts. Here’s a roundup of this week’s development and finance news.