CoStar News covered DataBank’s $725 million credit facility secured to fund expansion of its data center development pipeline amid surging demand driven by artificial intelligence applications. The financing represents the company’s first development-specific construction credit facility, significantly exceeding the initial $400 million target.
CFO and President Kevin Ooley explained that unprecedented AI-related demand for data center capacity drove lenders to nearly double the facility size. The credit facility, supported by 14 banks and led by TD Securities, provides flexible capital to accelerate construction timelines across DataBank’s U.S. campuses.
“This gives us the dry powder to be more flexible and allows us to have some deep-pocketed lenders alongside us.”
— Kevin Ooley, CFO and President of DataBank
Unlike previous project-by-project construction loans, this facility creates a “conveyor belt” of funding where completed and leased data centers transition to different financing, freeing capital for new projects in the pipeline.
DataBank plans $1.25 billion in capital expenditures this year, up from approximately $700 million previously. The company’s development pipeline includes delivery of 86 megawatts in 2024, 51 megawatts in 2025, and 143 megawatts planned for 2026.
Access the full CoStar News coverage here.
