Vantage Data Centers, a prominent name in the hyperscale data center sector, has successfully negotiated a $3 billion green loan, marking a significant phase in the company’s expansion plan in North America. The loan, primarily backed by Wells Fargo Securities, LLC, along with joint bookrunners TD Securities, Truist Securities, and Scotiabank, is part of a larger scheme to fortify Vantage’s data center infrastructure throughout the region.
This financial strategy involves a revolving credit facility that includes an initial collateral pool of eight sites. These sites comprise both leased and greenfield sites in a mix of new and existing markets, altogether accounting for almost 1.4GW of IT capacity. The arrangement of the financing allows for faster market entry than typical project-specific construction loans, bestowing Vantage Data Centers and its customers with enhanced operational agility. Moreover, the facility includes provisions for incorporating additional North American assets in the future.
Christophe Strauven, Senior Vice President of Capital Markets at Vantage, stressed the strategic benefit of this flexible funding model. “Over the past few years, Vantage has focused on innovative funding channels to back our swift expansion, and this revolving multi-asset development financing is not an exception,” he stated. Mr. Strauven emphasized that this approach allows immediate access to capital, facilitating rapid initiation of development projects vital for satisfying the increasing demand for IT capacity across North America.
The funding represents Vantage’s continuing commitment to sustainable practices. It’s the fifth green loan secured under the company’s Green Finance Framework. This framework directs Vantage’s commitment to the sustainable development, operation, and delivery of its data center facilities. Using these green loans, Vantage sponsors research and development activities aimed at enhancing sustainable features in its data centers. These features focus on energy efficiency, water management, and pollution prevention, and align with the carbon reduction objectives of both the company and its clients.
Sharif Metwalli, CFO at Vantage Data Centers, communicated his thankfulness towards their financial partners, recognizing their indispensable position in enabling Vantage’s agenda to create advanced digital framework capable of supplementing technological evolutions such as cloud computing and AI. “We value their endorsement, which is the basis of our capacity to craft the digital infrastructure required to bolster the upcoming generation of technology,” Mr. Metwalli conveyed.
Vantage had previously revealed around $10 billion of funding in the past year to assist in the enterprise’s continuous global expansion. Beyond the current announcement, the company had earlier stated a $6.4 billion equity investment in January, directed by DigitalBridge and Silver Lake, as well as a $64 million loan in March to aid in the establishment of Vantage’s inaugural campus in Taiwan.
