DataBank Raises $533M to Finance New Data Centers

DataBank, a colocation and connectivity company based in Dallas, raised $533 million in debt and equity to fund the construction of new data centers.

The financing consists of $188 million in equity raised from existing and new investors and a $345 million construction loan for a new data center in Atlanta.

The equity raise included $138 million from existing investors in a pre-emptive rights offering and $50 million from new investors. The $345 million loan will be used to build the ATL4 facility, a single-tenant, fully leased data center that is expected to open in the third quarter of 2024.

“The favorable loan terms, and the pre-emptive rights participation of existing equity investors so soon after our recapitalization, reflect the ongoing confidence of our investment partners and their willingness to seize the growth opportunity of the A.I. era ahead of us,” said Kevin Ooley, DataBank president & CFO.

First Citizens, MUFG, and CoBank served as joint lead arrangers and bookrunners for the debt transaction, with First Citizens serving as administrative agent. Jones Day provided legal representation.

The latest financing follows the $350 million credit facility announced in March, and the $715 million in secured notes announced in April. The announcement also follows DataBank’s recent acquisition of 85 acres of land for a new campus in Culpeper, VA and the purchase of 95 acres of land for an Atlanta campus.