US data center provider T5 Data Centers has received a loan for US$113m to expand its data center called T5@Dallas. The loan brings total debt raised by the company over the past three years to $500m.

Its 250,000 sq ft data center in Plano, Texas, will ultimately provide 22.5MW of critical IT-load power and house. The new funding round is being led by JP Morgan Chase Bank and includes investments from Wells Fargo Bank, RBS Citizens Financial Group and Raymond James.

T5 president and CEO Peter Marin said there was unprecedented demand for new data center capacity, driven by investment in private cloud and more enterprise infrastructure. “Companies are looking to capitalize on cloud computing resources to house their data, which is driving demand for high-capacity, custom-built data centers like T5@Dallas,” he said.

“This is the perfect time to invest in data center expansion."

While internet giants like Google and Facebook are investing hundreds of millions of dollars in data center infrastructure, there are few providers investing in new turnkey and purpose-built data centers to lease capacity to companies that cannot afford to build their own infrastructure, T5 said. The company is actively developing data center environments for lease to mid-size and large enterprise users.

The announcement comes the same week two other US data center providers announced new debt financing for expansion. Modular data center provider IO raised $260m from a syndicate of banks, and another provider QTS expanded its credit facility by $135m.