In a press release published on Jan. 4, wholesale data center developer, owner, and operator EdgeCore Digital Infrastructure announced the completion of a $1.9 billion debt financing transaction that will fund further development of its data center campus in Mesa, Ariz.
With ING Capital LLC as the sole Green Loan Structuring Agent and conducted in conjunction with EdgeCore’s owner, Partners Group, this transaction will reportedly provide a template for future financing across the EdgeCore portfolio.
The LEED-designed, water-neutral campus in Mesa will be capable of supporting a minimum of 450 MW of critical load and will be engineered to meet current and future customer requirements across 3.1+ million square feet of space.
EdgeCore’s SVP of finance, Julie Brewer, said in the press release, “The development of scalable data center campuses designed to support the density requirements of hyperscalers is EdgeCore's sole focus, and one that we address with sustainable construction, operations and business practices in mind. To this end, our Phoenix data center campus in Mesa, Ariz. is being developed using debt financing from this green loan."
The financing project was structured as a green loan thanks to the energy efficiency and sustainable water management features implemented by EdgeCore. The temperature of the Mesa campus is regulated through an air-cooled design along with a closed-loop chilled water system. This has allowed the campus to achieve a benchmark water usage effectiveness (WUE) rating of nearly zero and a power usage effectiveness (PUE) rating below 1.50 (the industry average).
In the press release, Fentress Boyse, member of management, Private Infrastructure Americas, Partners Group, said, "This represents the first of many financings EdgeCore will pursue to support its ambitious capital plans and customers' needs. The broad participation and strong demand from the banking partners associated with this financing is a validation of EdgeCore's differentiated approach and bright future. This financing also represents the largest green loan by a Partners Group portfolio company to date."
Partners Group acquired EdgeCore In Nov. 2022 with a pledge to invest up to $1.2 billion to fund the acquisition and buildout of existing and future data center sites. The initial capital was used by EdgeCore throughout 2023 to expand and begin the development of data center campuses in Santa Clara, Calif.; Ashburn, Va.; Mesa, Ariz.; and Reno, Nev.
The new debt financing is comprised of a limited-recourse senior secured term loan, a revolving senior secured letter of credit facility, and an accordion feature that will fund future development. The transaction was led by a consortium of coordinating lead arrangers, including MUFG, TD Securities, ING Capital LLC, Scotia Bank, and Santander. MUFG served as administrative agent, Davis Polk Watson served as borrower's/sponsor's counsel, and Milbank served as underwriters' counsel.
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