Scala Data Centers issues $215M in green debentures

Nov. 27, 2023
The data center provider said the amount will be directed to fund new hyperscale data centers operating with renewable energy, energy efficiency, and carbon neutrality. 

Scala Data Centers has issued green debentures worth $215 million, maturing in six years. The transaction represents the second-largest issuance of its type carried out by the data center sector in Brazil, reflecting the company's commitment to sustainability.

The funds from these debentures will be allocated to build data centers in Brazil, catering to hyperscale customers to address the increasing demand for cloud services. Scala’s new IT infrastructures will have energy efficiency and an average annual PUE (Power Usage Effectiveness, an index that measures energy efficiency) of less than 1.45. The strategy includes 100% of data centers powered by certified renewable energy in an entirely carbon-neutral operation, in line with Scala's portfolio.

Scala’s move comes as the Latin American data center market is set for new growth. According to data from consultancy Arizton, Latin America is an expanding market valued at $5.51 billion and expected to reach $ 8.81 billion by 2028.

"Our plan perfectly aligns with the trends and demands of the sector, positioning Scala ideally to capture the sustainable growth of the Hyperscale market," said Marcos Peigo, CEO and co-founder of Scala.

Given the sustainable actions underway since its founding, Scala could issue green debentures instead of Sustainability-Linked Bonds (SLB), which are linked to future fulfillment.

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