EdgeConneX, a Herndon, VA-headquartered data center developer, announced it successfully executed $3.3 billion in sustainability-linked financing. The deal enables the development of critical digital infrastructure to support customers’ global data center requirements while meeting environmental targets.
In October 2022, EdgeConneX, owned by Swedish financier EQT AB, closed a $2.6 billion sustainability-linked refinancing package for EdgeConneX’s pan-EMEA (Europe, Middle East & Africa) data center portfolio across seven countries and provided capital expenditure for future developments.
This financing is available in three parts as a term loan, a capex facility, and a revolving credit facility with an optional line of credit, if needed. Beyond consolidating EdgeConneX’ pan-EMEA portfolio, this deal allows for flexibility and funding capacity to support anticipated growth across the region.
Separately, in June 2022, funds managed by Ares Management’s Infrastructure Debt strategy, committed a delayed draw sustainability-linked global $1 billion debt facility that can be used to fund the development and construction of EdgeConneX’ growing global development pipeline.
Both facilities include sustainability-linked margin adjustments. This means that the interest rate payable is directly correlated to EdgeConneX achieving specific predetermined sustainability targets. These targets align with EdgeConneX holistic strategy to become a carbon-, waste- and water-neutral data center provider by 2030 and developing and operating a data center platform powered by 100 percent renewable energy.
Joe Harar, EdgeConneX CFO, comments, “Sustainability is a necessity, and EdgeConneX has adopted sustainability principles across all aspects of our business.”
EdgeConneX owns and operates 60 data centers across 50 markets in 30 countries. Its portfolio includes over 200 far-edge and EdgePop deployments and more than 500 MW of capacity deployed or in development worldwide. EdgeConneX also specializes in build-to-suit data center facilities for hyperscalers.
By John Celentano, Inside Towers Business Editor
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