DataBank has $1bn in liquidity to fund US data centre expansions

DataBank announced it has secured nearly $1 billion in liquidity through secured note offerings to fuel U.S. data center expansions. In its second securitization in 2021, the company issued $330 million in secured notes, bringing its total raised capital for the year to $988 million. The proceeds will support the development of new data center facilities and campuses in key markets, including Salt Lake City, Denver, Ashburn, and New York.

Kevin Ooley, President and CFO of DataBank, said the financing demonstrates strong investor confidence in the company’s strategy to build a broad footprint of multi-tenant, enterprise-grade edge colocation data centers across a mix of Tier I and Tier II markets. He noted that institutional investors have increasingly backed DataBank’s model, which historically has been more common among hyperscale operators.

This securitization follows DataBank’s earlier $658 million secured notes offering in March 2021—the first of its kind for a multi-tenant data center provider—and comes less than a year after the company’s acquisition of zColo’s assets. DataBank’s portfolio at that time spanned more than 60 data centers in 29 metro markets with 20 major interconnection locations, positioning it for continued geographic expansion and service growth.