Equinix, Inc. (EQIX) has borrowed an additional $40 million to finance the expansion of its Washington, D.C. area data center campus, following through on a financing plan first announced last September. Equinix shares were down $2.73 to $72.65 in mid-morning trading on Wall Street.
Equinix is increasing the existing mortgage on its Washington, D.C. area campus from $60 million to $100 million, on the same terms as the initial mortgage, which is a fixed rate of 8% and a 20-year term. Equinix weill use the borrowing to fund its expansion strategy for the D.C. area. Equinix is building out an existing shell on the campus and intends to open the new facility this month. The new data center will add approximately 100,000 gross square feet and increase sellable cabinets by 1,700 to meet increasing demand in the Washington, D.C. area.
Separately, Equinix said it received rezoning approval over the past summer, enabling Equinix to increase its capacity on the campus by approximately 100,000 square feet.
"The receipt of financing for the new Washington, D.C. area IBX, in addition to the $110 million in financing for our Chicago build, which we expect to close in the next few weeks, will enable us to execute on our vision and maximize flexibility in managing our expansion plans without dilution to our shareholders," said Peter Van Camp, CEO of Equinix. "The new Washington, D.C. area IBX will accommodate the strong pipeline already built for this center and solidify our position as the leading provider of colocation and network exchange services."