STACK Infrastructure continues to line up low-cost capital to fund the growth of its data center footprint. The developer has borrowed $400 million through the sale of securitized notes, the latest in four transactions that have raised $1.8 billion to build more data centers.
STACK can access cheap capital through its use of securitization financing, in which a company creates a security based on the creditworthiness of a specific pool of assets, rather than the entire company. This week’s funding comes with a fixed interest rate of 1.87 percent, which is the lowest rate yet for STACK.
“Our latest capital raise demonstrates continued investor confidence in the company’s unwavering ability to deliver speed and scale to support the growth of our hyperscale and large enterprise clients,” said Heather Paduck, Chief Financial Officer of STACK. “With cloud companies thriving like never before, STACK is well positioned to deliver critical capacity where our clients need it most.”
STACK says it will use the capital for the construction and delivery of data center capacity, along with continued investments in sustainability, safety, and technology. STACK’s continued expansion is fueled by the widespread adoption of cloud infrastructure and artificial intelligence, and the new demands of an increasingly remote workforce.
The COVID-19 pandemic has accelerated absorption in all the major U.S. markets, with record leasing of more than 700MW and the addition of nearly 17 million square feet in 2020, with approximately 57% of this capacity dedicated to large cloud providers.
STACK Infrastructure was formed by investor IPI Data Center Partners with assets acquired from Infomart Data Centers and T5 Data Centers, giving it a national footprint spanning 1.5 million feet of space and 100 megawatts of capacity. STACK’s strategy features a combination of “rack-ready” wholesale space for immediate delivery (Ready STACK), rapid development of powered shell data halls for larger requirements (Power STACK), and build-to-suit projects for entire campuses (Hyper STACK).
STACK’s development pipeline spans the U.S. data center landscape. It includes:
- A 100% pre-leased 32MW multi-story data center on its campus in San Jose, California, currently under construction.
- A 125-acre hyperscale data center campus with 250MW of potential critical capacity in Prince William County, Virginia in partnership with the Peterson Companies.
- A 24MW, multi-story data center adjacent to its existing facility in Chicago, which will be ready for service in the second half of 2020.
- An 80+MW expansion of its Portland data center campus, which is currently under development.
- A 79-acre hyperscale campus in Avondale, Arizona with access to over 150MW of critical capacity.
- A 400-acre hyperscale data center campus with 400MW potential critical capacity in AllianceTexas, a master-planned development in Fort Worth, Texas, in partnership with Hillwood.
- Acquisition of an existing data center in New Albany, Ohio, where its campus includes development land that has the potential to add an additional 32MW of capacity.
- Expansion in Atlanta, Georgia, bringing total capacity in that region to 20MW.
