Developer and operator of wholesale data centers, EdgeCore Digital Infrastructure, has announced the closing of a significant debt financing agreement for $1.9 billion. This move would represent a strategic milestone in the company’s growth trajectory and is expected to greatly boost the development of its enormous data center facility in Mesa, Arizona.
The financing was carried out in cooperation with EdgeCore’s owner, Partners Group, a well-known private equity company worldwide. It is a component of EdgeCore’s larger financial plan throughout its portfolio. This deal would establish a standard for EdgeCore’s next financings and demonstrate the solid financial support and clear strategic direction driving the business.
The Mesa campus of EdgeCore would serve as evidence of the company’s dedication to providing sustainable and scalable data center solutions. Spread over 3.1 million square feet, the site is anticipated to accommodate a minimum of 450 MW of critical load upon completion. There are now two data centers under development and one functioning on site, providing 206 MW of critical load capacity.
The business is committed to building data center campuses specifically for hyperscalers, with sustainability at the forefront of both construction and operations, as noted by EdgeCore’s Senior Vice President of Finance, Julie Brewer. She said that the development of the Mesa site is being funded by a Green Loan, which reflects EdgeCore’s emphasis on ecologically conscious corporate practices.
Sustainable Innovation
The inventive temperature control system on the Mesa campus is one of its most notable characteristics. EdgeCore achieves a near-zero water use effectiveness (WUE) rating and a power usage effectiveness (PUE) rating that is much lower than the industry norm of around 1.50 by using an air-cooled design with an ultra-efficient closed-loop chilled water system. With ING Capital LLC serving as the only Green Loan Structuring Agent, the project’s compliance with the most recent Green Loan Principles further demonstrates its environmental credentials.
One of Partners Group’s executive team members, Fentress Boyse, cited EdgeCore’s funding of the Mesa facility as a significant accomplishment. He made the point that EdgeCore’s distinct strategy and bright future are validated by the significant demand from banking partners in this funding round. Furthermore, this financing is the biggest Green Loan that a Partners Group portfolio business has ever executed.
Partners Group acquired EdgeCore in November 2022 and agreed to provide up to $1.2 billion to finance the purchase and expansion of EdgeCore’s current and future data center locations. With the help of this first funding, EdgeCore joined Mesa in expanding into other key areas such as Santa Clara, Ashburn, and Reno.
The $1.9 billion debt financing package includes a limited-recourse senior secured term loan, an accordion element for future development, and a revolving senior secured letter of credit facility. The acquisition was spearheaded by a number of well-known financial firms, with MUFG serving as the administrative agent. Legal counsel for the transaction was given by Milbank and Davis Polk Watson, who were representing the borrower/sponsor and the underwriters, respectively.
This financial achievement for EdgeCore Digital Infrastructure would be indicative of the company’s expanding market share in the data center industry as well as its dedication to providing technologically sophisticated, scalable, and sustainable solutions that meet the constantly changing needs of the digital infrastructure sector.
