The debt markets appear to be welcoming data center construction funding. In the past eight days we've seen a flurry of announcements of debt financing for existing providers seeking to expand their footprint to add more colocation or wholesale data center space. The four announcements provide a total of $620 million in borrowing power, much of which will support construction of new data center space.
Here's a rundown of the recent announcements:
Vantage Data Centers - On Feb. 15, Vantage Data Centers announced that it has raised $135 million in debt financing to accelerate construction on its data center projects in Silicon Valley and Washington state. Vantage worked with a lending group that includes Royal Bank of Canada, KeyBank, Bank of America, Barclays Bank, Raymond James Bank, FSB and UBS Loan Finance as participants.
QTS - Also on Feb. 15, data center service provider QTS (Quality Technology Services) said that it has increased the capacity of its credit facility by $270 million, to a total of $440 million. QTS will use the additional money to continue to expand data center space in key markets.
Telx Group - On Feb. 21 the Telx Group said that it has closed a $75 million incremental term loan agreement. The colocation and interconnection provider will use the funds to supplement its liquidity and for “general corporate purposes.”
RagingWire - On Feb. 23 RagingWire Data Centers announced that it has secured $140 million in revolving credit facilities with two banks led by Bank of America, which will provide the growing colocation provider with the funding to pursue expansion projects on both the East and West coast.