DataBank Raises USD 533 Million to Fund Data Center Expansion

DataBank announced this week that it has raised capital totalling USD 533 million, combining debt and equity to support the construction of new data centres. The company said the financing includes USD 188 million in equity from existing and new investors, in addition to a USD 345 million construction loan for the upcoming ATL4 facility – a single-tenant, fully leased data centre located near Atlanta.

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Also Read: DataBank Announces Expansion of SL6 Data Center in Utah

Existing Investors and New Participants

Of the equity raise, USD 138 million came from existing investors in a pre-emptive rights offering, while USD 50 million was contributed by new equity investors. The USD 345 million loan, arranged by Joint Lead Arrangers and Joint Bookrunners First Citizens, MUFG, and CoBank, will fund the ATL4 facility set to open in Q3 2024.

Sustainability Focus

Additionally, DataBank will secure 100 percent load-following renewable power for ATL4 through Georgia Power’s solar-based Renewable Energy Certificates, aligning with the company’s goal of achieving net-zero carbon emissions by 2030.

“This new financing will allow us to continue bringing important capacity to market to meet extremely high demand for data centre space and power,” said DataBank.

“The favourable loan terms, and the pre-emptive rights participation of existing equity investors so soon after our recapitalisation, reflect the ongoing confidence of our investment partners and their willingness to seize the growth opportunity of the AI era ahead of us.”

Also Read: DataBank Expands Dallas Data Center to Meet Growing Demands