EdgeCore Digital Infrastructure, a wholesale data center developer, owner, and operator, has closed a $400 million round of funding. The funds will accelerate the development of its Silicon Valley campus.
This transaction follows the $1.9 billion debt financing announced by EdgeCore in January 2024, conducted with its owner, Partners Group, a global private market firm.
EdgeCore’s $440 million financing comprises a limited-recourse senior secured term loan. The transaction's coordinating Lead Arrangers and Book Runners were MUFG Bank, Ltd., ING Capital LLC, and First-Citizens Bank & Trust Company. MUFG Bank, Ltd. served as the Administrative Agent, and ING Capital LLC was the sole Green Loan Structuring Agent. Davis Polk Watson served as the borrower/sponsor’s counsel, and Milbank served as the underwriter’s counsel.
Supporting EdgeCore’s focus on utilizing sustainable construction, operations and business practices, both debt financing transactions secured by the company in 2024 have been structured as Green Loans in alignment with the latest Green Loan Principles as published by the Loan Market Association, Asia Pacific Loan Market Association and the Loan Syndications & Trading Association, and with ING Capital LLC as the sole Green Loan Structuring Agent.
Time of expansion
The past year has been a time of expansion for EdgeCore Digital. In January 2023, EdgeCore broke ground on its campus in capacity and power-constrained Santa Clara and has made progress on the first data center and campus substation.
When the Santa Clara campus is fully built out, EdgeCore’s LEED-designed campus will be capable of supporting 72 MW of critical load and will be engineered to meet customer requirements across 540,000 square feet of space. Beginning in 2024, Silicon Valley Power will provide utility power.
"Continuing the pace of rapid growth and development EdgeCore established in 2023, we leveraged the template set by our debt financing announced in January to close the $440 million transaction quickly we closed,” said Julie Brewer, EVP of Finance, EdgeCore Digital Infrastructure. “This funding will be put to immediate use in our Silicon Valley market to meet the critical capacity needs of hyperscale customers searching for single tenant data centers built to accommodate high-density space and power requirements.”
Leverage and extend
A big focus of EdgeCore’s owner Partners is to enhance its presence in the data center market.
After EdgeCore was acquired by Partners Group in 2022, the company put forth a plan to invest up to $1.2 billion to fund the acquisition and buildout of existing and future data center sites.
In October 2023, EdgeCore Digital Infrastructure introduced a new brand to reflect its business strategy.
Since the beginning of 2023, EdgeCore has begun actively developing or expanding its data center campuses in Silicon Valley, California; Phoenix, Arizona; and Reno, Nevada. It has also announced the purchase of new land for development in Ashburn, Virginia.
In 2024, EdgeCore plans to invest another 600 million dollars into new regions located in areas with a combination of land and near-term power availability suitable for supporting up to three sites with a minimum capacity of 300MVA each.
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