• About Us
  • Partnership Opportunities
  • Privacy Policy

Data Center Frontier

Charting the future of data centers and cloud computing.

  • Cloud
    • Hyperscale
  • Colo
    • Site Selection
    • Interconnection
  • Energy
    • Sustainability
  • Cooling
  • Technology
    • Internet of Things
    • AI & Machine Learning
    • Edge Computing
    • Virtual Reality
    • Autonomous Cars
    • 5G Wireless
    • Satellites
  • Design
    • Servers
    • Storage
    • Network
  • Voices
  • Podcast
  • White Papers
  • Resources
    • COVID-19
    • Events
    • Newsletter
    • Companies
    • Data Center 101
  • Jobs
You are here: Home / Colo / Sabey Data Centers Lines up $800 Million to Fund Growth

Sabey Data Centers Lines up $800 Million to Fund Growth

By Rich Miller - April 30, 2020

Sabey Data Centers Lines up $800 Million to Fund Growth

An aerial view of the Sabey Data Centers campus in Ashburn, Virginia. (Photo: Sabey Data Centers)

LinkedinTwitterFacebookSubscribe
Mail

Developer Sabey Data Centers has lined up $800 million in funding, using securitized notes to arrange low-cost capital for continued expansion of the company’s U.S. data center campuses.

Sabey operates more than 3 million square feet of mission-critical space, making it one of the largest privately-held multi-tenant data center operators in the United States. The Seattle-based builder has campuses in Northern Virginia (Ashburn), Manhattan and three sites across the Pacific Northwest. The company is in expansion mode, adding capacity across its footprint.

The transaction used an asset-backed securitization (ABS) platform from Guggenheim, and the notes earned an investment grade A+ rating from Standard & Poor’s.

In a securitization financing, a company creates a security based on the creditworthiness of a specific pool of assets, rather than the entire company. Data center developers can issue debt notes backed by cash flow from operational data centers, which are leased by some of the world’s largest and most credit-worthy companies. That tenant credit quality enables the issuer to pay lower interest rates on its debt, which reduces its costs as it seeks to compete and build additional facilities.

Robert Rockwood, the President of Sabey Data Centers, said the financing was a significant win for the company.

“It provides low-cost, fixed-rate debt and a long-term capital structure to support future growth,” said Rockwood. “In essence, this facility will give us the capacity to double our size on existing campuses that we control. In addition, we continue to unlock our potential to offer low-cost, renewable energy to our customers.”

Raising Capital In A Challenging Environment

Sabey Corp. has more than 25 years of experience in the data center business and is one of the largest operators of hydro-powered facilities in the United States. The company initially focused on commercial development, including office and industrial space for major Seattle corporations like Boeing and Starbucks. Sabey then diversified into data center real estate, as well as technical facilities for life sciences and healthcare.

“In essence, this facility will give us the capacity to double our size on existing campuses that we control.”
Robert Rockwood, Sabey Data Centers

Sabey has recently been expanding its campuses in Ashburn and Quincy, Washington. The financing announced today will support ongoing development, and will refinance the company’s existing credit facility with TD Securities, according to Patty Sewell, the Chief Financial Officer of Sabey Corporation.

Sewell also noted that this was accomplished during a challenging financial environment amid the COVID-19 pandemic, calling it “a testament to the strength of Sabey’s assets, team and story.”

Free Resource from Data Center Frontier White Paper Library

data center provider
3 Questions to Ask Your Data Center about Environmental & Social Responsibility
In a world rightly concerned about climate change, growing energy requirements can be a liability. But with a few actionable steps, data center decision makers can use their energy purchasing power to be part of the solution.  The new report explores these three questions to ask your data center provider about their energy consumption.
We always respect your privacy and we never sell or rent our list to third parties. By downloading this White Paper you are agreeing to our terms of service. You can opt out at any time.

Get this PDF emailed to you.

“I applaud Guggenheim Securities for its extraordinarily thoughtful execution of this transaction, the first 144A non-traditional new issue ABS deal since the markets effectively closed on March 11th due to the COVID-19 pandemic,” said Sewell.

Sabey is the third data center provider to use securitization financing, following Vantage Data Centers and STACK Infrastructure. Both those issues received an A- rating from credit agencies.

 

LinkedinTwitterFacebookSubscribe
Mail

Tagged With: Sabey Data Centers

Newsletters

Stay informed: Get our weekly updates!

Are you a new reader? Follow Data Center Frontier on Twitter or Facebook.

About Rich Miller

I write about the places where the Internet lives, telling the story of data centers and the people who build them. I founded Data Center Knowledge, the data center industry's leading news site. Now I'm exploring the future of cloud computing at Data Center Frontier.

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter

Voices of the Industry

Six Ways Edge Computing is Changing the Digital Ecosystem Landscape

Six Ways Edge Computing is Changing the Digital Ecosystem Landscape The pandemic exposed a nation-wide digital divide. Brad Alexander of DartPoints, outlines how edge computing is bridging that gap and changing the digital ecosystem landscape.

White Papers

sustainable data center

The Rise of the Sustainable Data Center

Sustainability is now a top-of-mind issue in data center construction and management, as cloud computing and digital transformation fuel the world’s growing thirst for processing power. Get the new report from Vertiv that explores the future of the sustainable data center and its impact on the industry. 

Get this PDF emailed to you.

We always respect your privacy and we never sell or rent our list to third parties. By downloading this White Paper you are agreeing to our terms of service. You can opt out at any time.

DCF Spotlight

Data center modules on display at the recent Edge Congress conference in Austin, Texas. (Photo: Rich Miller)

Edge Computing is Poised to Remake the Data Center Landscape

Data center leaders are investing in edge computing and edge solutions and actively looking at new ways to deploy edge capacity to support evolving business and user requirements.

An aerial view of major facilities in Data Center Alley in Ashburn, Virginia. (Image: Loudoun County)

Northern Virginia Data Center Market: The Focal Point for Cloud Growth

The Northern Virginia data center market is seeing a surge in supply and an even bigger surge in demand. Data Center Frontier explores trends, stats and future expectations for the No. 1 data center market in the country.

See More Spotlight Features

Newsletters

Get the Latest News from Data Center Frontier

Job Listings

RSS Job Openings | Pkaza Critical Facilities Recruiting

  • Critical Power Energy Manager - Data Center Development - Ashburn, VA
  • Site Development Manager - Data Center - Ashburn, VA
  • Data Center Facility Operations Director - Chicago, IL
  • Electrical Engineer - Senior - Dallas, TX
  • Mechanical Commissioning Engineer - Calgary, Alberta

See More Jobs

Data Center 101

Data Center 101: Mastering the Basics of the Data Center Industry

Data Center 101: Mastering the Basics of the Data Center Industry

Data Center Frontier, in partnership with Open Spectrum, brings our readers a series that provides an introductory guidebook to the ins and outs of the data center and colocation industry. Think power systems, cooling, solutions, data center contracts and more. The Data Center 101 Special Report series is directed to those new to the industry, or those of our readers who need to brush up on the basics.

  • Data Center Power
  • Data Center Cooling
  • Strategies for Data Center Location
  • Data Center Pricing Negotiating
  • Cloud Computing

See More Data center 101 Topics

About Us

Charting the future of data centers and cloud computing. We write about what’s next for the Internet, and the innovations that will take us there. We tell the story of the digital economy through the data center facilities that power cloud computing and the people who build them. Read more ...
  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

About Our Founder

Data Center Frontier is edited by Rich Miller, the data center industry’s most experienced journalist. For more than 20 years, Rich has profiled the key role played by data centers in the Internet revolution. Meet the DCF team.

TOPICS

  • 5G Wireless
  • Cloud
  • Colo
  • Connected Cars
  • Cooling
  • Cornerstone
  • Coronavirus
  • Design
  • Edge Computing
  • Energy
  • Executive Roundtable
  • Featured
  • Finance
  • Hyperscale
  • Interconnection
  • Internet of Things
  • Machine Learning
  • Network
  • Podcast
  • Servers
  • Site Selection
  • Social Business
  • Special Reports
  • Storage
  • Sustainability
  • Videos
  • Virtual Reality
  • Voices of the Industry
  • Webinar
  • White Paper

Copyright Endeavor Business Media© 2022