EdgeConneX closes financing round for global expansion, sustainability initiatives
EdgeConneX has secured a total of $1.7 billion to accelerate global expansion and develop sustainable data center solutions. The financing includes the company’s first-ever asset-backed securitization and multi-currency term loan. The capital inflow will be used for the development and construction of EdgeConneX’s data center solutions.
As part of the new debt facility, the interest rate will depend on EdgeConneX achieving certain pre-determined sustainability targets. These targets will be aligned with EdgeConneX’s ESG sustainability strategy to develop more energy-efficient data centers across the globe. EdgeConneX pledges to be carbon, water, and waste neural by 2030 and operate a data center platform on 100% renewable energy.
EdgeConneX is a provider of regional and edge data center solutions that operates purpose-built digital infrastructure with over 50 data centers located in more than 40 markets across various continents. The geographical footprint includes North America, Europe, South America, and Asia where EdgeConneX delivers high capacity, connectivity, power-efficient services in close proximity to end users.
Phil Marangella, Chief Marketing and Product Officer at EdgeConneX, spoke to EdgeIR earlier this year about the market and the company’s ESG initiatives.
“Sustainability is fundamental for us,” he said. “We look at sustainability holistically. It’s not just the power aspect, but it’s water. It’s materials. It’s people, right?” He notes that the company is following UN guidelines for benchmarking and tracking. We’re gonna follow the UN’s guidelines in terms of how we benchmark ourselves and how we track and report how truly sustainable we are as a company.
The fund will reportedly be managed by Ares Management Corporation with the new debt facility providing a commitment of up to approximately $1 billion which will be used to refinance the existing indebtedness.
Global expansion plans, ESG included
With global expansion as one of the key elements, EdgeConneX is already working with Adani Group in India to deliver 1GW of sustainable data center capacity with plans to implement ESG practices and policies in overall business and operations.
“The India [example] is a great one…because we’re not just ticking the box and saying, ‘Hey, I’m going to use renewable energy credits to offset what we’re doing from a data center power usage perspective.’ We’re actually going to source direct renewable energy to power our facilities,” Marangella said, adding that they are looking at water usage and how to use [recycled] water to cool the facility, filter the water and then put clean water out.
EdgeConneX also recently announced the acquisition of GTN data center in Indonesia expanding its geographical footprint into other Asian markets. Along with the acquisition, EdgeConneX said that it has acquired land adjacent to the data center where it intends to build a hyperscale data center campus with up to 90 megawatts of capacity.
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edge data center | EdgeConneX | ESG | financing | hyperscale