New updates have been reported about DataBank (DATAB)
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
DataBank has significantly increased its credit facility from $725 million to $1.6 billion, a strategic move aimed at accelerating its data center construction projects. This expansion will support the development of over 100MW of capacity across key markets such as Northern Virginia, Dallas, Denver, Minneapolis, and Salt Lake City. The demand for this lending facility was notably high, with participation from 20 leading digital infrastructure lenders, including all 14 from the initial credit arrangement. This financial maneuver not only enlarges the facility but also reduces the overall interest rate and extends the maturity date, providing DataBank with a long-term, cost-effective capital source to meet the rising demand for data center capacity.
This marks DataBank’s fourth green financing initiative, following a recent $1.1 billion hyperscale securitization. The financing qualifies as a green loan, adhering to specific Power Usage Effectiveness metrics, and aligns with DataBank’s sustainability goals, including water conservation and carbon emissions reduction, as part of its commitment to achieving carbon neutrality by 2030. Kevin Ooley, DataBank’s President and CFO, emphasized the importance of this expansion in meeting the growing needs of their enterprise, AI, and hyperscale cloud customers. The transaction was facilitated by TD Securities, with Citizens Bank, CoBank, Deutsche Bank, Société Générale, and MUFG serving as joint lead arrangers. This development underscores DataBank’s robust platform and strategic execution capabilities, reinforcing its position in the data center market.