EdgeCore Digital Infrastructure, a leading provider of wholesale data centers, has recently finalized a significant debt financing agreement totaling $1.9 billion. This development marks a crucial step in the company’s growth strategy, particularly in enhancing the expansion of its massive data center facility located in Mesa, Arizona.
The financing agreement was executed in collaboration with Partners Group, a globally recognized private equity firm and EdgeCore’s parent company. This financial arrangement is part of EdgeCore’s overall financial strategy across its portfolio. It sets a benchmark for future financing activities and underscores the robust financial backing and strategic vision driving the company forward.
The Mesa campus operated by EdgeCore reflects the company’s commitment to delivering sustainable and scalable data center solutions. Spanning an impressive 3.1 million square feet, the site is designed to support a minimum of 450 MW of critical load upon completion. Currently, there are two data centers under construction and one operational on the site, collectively offering 206 MW of critical load capacity.
Emphasizing the company’s dedication to building data center campuses tailored for hyperscalers, Julie Brewer, EdgeCore’s Senior Vice President of Finance, highlighted the focus on sustainability in both construction and operations. The development of the Mesa site is being funded through a Green Loan, underscoring EdgeCore’s environmentally conscious approach.
Innovative sustainability measures are evident at the Mesa campus, including a cutting-edge temperature control system. By utilizing an air-cooled design with an ultra-efficient closed-loop chilled water system, EdgeCore achieves an impressive near-zero water use effectiveness (WUE) rating and a significantly lower power usage effectiveness (PUE) rating compared to industry standards. The project’s alignment with the latest Green Loan Principles, overseen by ING Capital LLC as the Green Loan Structuring Agent, further underscores its environmental credentials.
Fentress Boyse, a key member of Partners Group’s executive team, commended EdgeCore’s funding of the Mesa facility as a notable achievement. He highlighted the strong demand from banking partners in this financing round as a testament to EdgeCore’s unique strategy and promising future. Additionally, this financing represents the largest Green Loan executed by a Partners Group portfolio company to date.
Following Partners Group’s acquisition of EdgeCore in November 2022, the agreement included up to $1.2 billion to support the purchase and expansion of EdgeCore’s existing and future data center locations. This initial funding enabled EdgeCore to expand beyond Mesa into key regions such as Santa Clara, Ashburn, and Reno.
The $1.9 billion debt financing package comprises a limited-recourse senior secured term loan, an accordion feature for future development, and a revolving senior secured letter of credit facility. Notable financial institutions led the acquisition, with MUFG serving as the administrative agent. Legal representation for the transaction was provided by Milbank and Davis Polk Watson, representing the borrower/sponsor and the underwriters, respectively.
This financial milestone for EdgeCore Digital Infrastructure underscores the company’s growing market presence in the data center industry. It highlights EdgeCore’s commitment to delivering technologically advanced, scalable, and sustainable solutions that cater to the evolving needs of the digital infrastructure sector.
