DataBank adds $350m financing to US edge data centre expansion

Data Centre

Fin is a former junior editor at TechForge.

DataBank Inc., a connectivity and cloud provider, has secured $350 million in financing for an expansion of its US data centre infrastructure.

The financing, led by TD Securities, includes a 5-year loan of $175 million as well as a delayed loan of $125 million and $50 million in revolving credit.

The $350 million package comes weeks after the Dallas, Texas-based company announced a $715 million financing on 1 March.  

DataBank will use the new funds to support its general working capital and capital expenditures to deploy new data centres at campuses across the US in Salt Lake City, Atlanta, Denver, and New York.

SLC6, DataBank’s Salt Lake City data centre, opened in September 2022 to support increased demand for critical IT infrastructure in the state of Utah.

Kevin Ooley, president and CFO at DataBank, said of the financing: “This additional financing allows DataBank to fully implement its aggressive expansion roadmap. Our ability to swiftly complete this transaction reflects both investors’ confidence in our edge strategy as well as DataBank’s proven ability to execute on its business plans.”

Last year, DataBank successfully completed a $1.9 billion recapitalisation led by SwissLife Asset Management.

The year prior in 2021 the company completed two separate securitisations worth close to $1 billion in total.

DataBank’s colocation and edge infrastructure footprint spans more than 65 data centres and 20 interconnection hubs in 27 markets, on-ramping to an ecosystem of cloud providers.

The company says it provides managed security, compliance enablement, hands-on support, and 100% uptime availability.

It said it is optimistic that the extra capital will support the company’s growth plans in the rapidly adjusting data centre landscape.

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