Echelon Data Centres Secures €1.7 Billion Loan from Morgan Stanley for European Expansion
March 25, 2026
In a significant move highlighting the intense capital requirements of the digital infrastructure sector, Irish data center developer Echelon Data Centres has secured a major €1.7 billion (approximately $1.97 billion) loan facility from Morgan Stanley. The financing underscores the continued investor confidence in the growth trajectory of the European data center market, driven by escalating demand from cloud providers and enterprises.
The newly announced financing represents an initial tranche that will fuel Echelon's aggressive build-out strategy across the continent. The company, which is backed by global investment firm Starwood Capital Group, plans to deploy the capital to accelerate the development of its extensive project pipeline.
Echelon, founded in 2016, has rapidly assembled a portfolio of eight campus locations spread across key European markets, including Ireland, the United Kingdom, Spain, and Italy. The total planned capacity of this pipeline amounts to a substantial 1.2 gigawatts (GW), of which approximately 400 megawatts (MW) is currently either operational or in active development. This scale positions Echelon as a formidable player in the region's competitive landscape.
Commenting on the deal, Charlie Etheridge, Head of Investments at Echelon Data Centres, stated: “This €1.7 billion financing strengthens our capital position and provides the flexibility to execute on our pipeline at scale and at pace. It reflects the quality of our platform and the strong institutional support behind our strategy. We are pleased to continue our valued partnership with Morgan Stanley as we advance the next phase of our European expansion.” The company was advised on the transaction by law firms A&O Shearman and Arthur Cox.
The transaction is more than a simple corporate loan; it signals robust institutional belief in the long-term fundamentals of data center demand in Europe. As digital transformation, artificial intelligence workloads, and data sovereignty regulations drive need for more capacity, well-capitalized developers like Echelon are poised to capture significant market share. This infusion of debt capital will enable the company to convert its large land bank and power entitlements into operational assets, contributing to the overall supply of critical digital infrastructure in the region.
Source: datacenterdynamics
