Loan backed up by fully leased data center in Mesa
US data center firm EdgeCore Digital Infrastructure has secured new financing backed by one of its data centers in Arizona.
The company this week announced the completion of an asset-backed securitization (ABS), totaling $235 million. Proceeds will be used to refinance construction loans and fund future green data center development.
The ABS issuance is backed by EdgeCore's stabilized PH01 data center in the Mesa area of Phoenix, Arizona. The facility, fully leased to a single hyperscale tenant, offers 26MW of IT capacity.
"EdgeCore's rapid, exponential growth continues to be supported by the strong financial backing of our owner, Partners Group, and our ability to raise funds through various financing strategies," said Lee Kestler, CEO, EdgeCore Digital Infrastructure. "Today's announcement of a significantly oversubscribed, $235 million asset-backed securitization and establishment of a corresponding master trust is a strong first step in a series of ABS issuances which will fund the development of high-density data center campuses across our portfolio."
The “significantly oversubscribed” ABS is comprised of designated green bonds, issued in accordance with EdgeCore's Green Financing Framework.
"We prioritized the inclusion of green bonds in this $235 million ABS transaction as part of EdgeCore's commitment to designing and operating green data center campuses," said Julie Brewer, EVP of Finance, EdgeCore Digital Infrastructure. "The strength of the S&P ratings associated with this securitization are proof that the financial market continues to see value and stability in EdgeCore and the data center industry as a whole."
Launched in 2018, EdgeCore was acquired by Partners Group in 2022 with plans to invest up to $1.2 billion to fund the acquisition and build-out of existing and future data center sites, and has been on a rapid expansion spree. The company has previously secured more than $2bn in financing to fuel its build-out.
The company currently operates facilities in Silicon Valley and Greater Phoenix. Its facility in Reno, Nevada, is set to be delivered in 2026. The company is also developing multiple sites in Virginia.
EdgeCore broke ground on the first 200,000 sq ft (18,580 sqm), 26MW Phoenix data center – known as PHO1 – in 2018. EdgeCore acquired around 15 acres of land in Mesa from Meta in 2022, and another 44 acres earlier this year. The company has said the campus could total more than 450MW across 3.1 million sq ft (287,999 sqm) at full build-out.
