EdgeConneX has successfully executed $3.3 billion in sustainability-linked financing — facilitating the development of digital infrastructure to meet customers’ data center needs, the company says.
“We are honored by the IJGlobal Award distinction for our innovative financing structures that can be replicated globally,” states Joe Harar, the CFO of EdgeConneX.
EdgeConneX closed a €2.4 billion sustainability-linked (re)financing deal in October 2022 to support its pan-EMEA data center portfolio across seven jurisdictions and potential future developments. The financing consists of: a term loan, a CapEx facility and a revolving credit facility.
According to EdgeConneX, this deal gives the company the capacity to switch from project financing to structured corporate debt, allowing for more agility and funding capacity for expansion. This deal is Europe’s first data center platform financing.
In other news, Ares Management’s Infrastructure Debt strategy committed a $1 billion sustainability-linked debt facility to EdgeConneX in June 2022. The corporate debt package offers flexibility and additional capacity for EdgeConneX’s anticipated growth, the company says.
“These financings leverage EdgeConneX Green Finance Framework and enable us to execute growth plans by reinforcing our commitment to delivering energy-efficient and innovative sustainable solutions for our customers anywhere in the world,” says Harar.
At both of these locations, sustainability-linked margin adjustments are used. This means the interest rate EdgeConneX pays directly relates to hitting specific pre-set sustainability goals.
The sustainability-linked financing packages have also earned EdgeConneX recognition from the IJGlobal Awards, as they took home the “Digital Infrastructure Deal of the Year Award 2022” on March 9th, 2023. The awards are focused on honoring excellence in international infrastructure and energy deals.
“Sustainability is a necessity, and EdgeConneX has adopted sustainability principles across all aspects of our business,” adds Harar.
The company has over 60 data centers across 50 markets in 30 countries, 200+ edge deployments and 500MW of capacity deployed or in development.
Further, EdgeConneX recently made headlines for connecting its Sant Boi de Llobregat data center in Barcelona, Spain to the AFR-IX Barcelona Cable Landing Station (CLS). This significant link is a gateway between Europe, Africa and the rest of the globe.
EdgeConneX also discussed sustainability efforts in a video interview with EdgeIR.
data center | EdgeConneX | ESG | financing | interconnection | sustainability