US data center company Aligned has secured an extra $250 million in sustainability-linked debt.

Last year the Texas-based wholesale firm became the first data center company to receive a sustainability-linked loan (SLL); raising $1 billion for both sustainability initiatives and general expansion with the interest rate tied to sustainability goals.

The new funding consists of a $650 million term loan, a $100 million delayed draw term loan, and a $250 million revolving credit facility. Goals tied to the loan included a commitment to match 100 percent of the company's annual energy consumption to zero-carbon renewable energy by 2024; greater transparency in its sustainability best practices; and worker safety goals with a low Total Recordable Incident Rate. Meeting those goals would result in a lower interest rate on the loan.

This week the company said it had successfully met and exceeded all the requirements of the original loan and secured another $250 million, taking its total senior secured credit facility to $1.25 billion for further expansion and funding of sustainability efforts.

“Aligned’s credit facility upsizing will provide increased financial capacity and flexibility to support the expansion of our data center portfolio in step with rising demand and further development of our core sustainability initiatives,” said Anubhav Raj, CFO, Aligned. “Our company’s position is that an investment in digital infrastructure requires an investment in sustainability, which is essential to positive, lasting impact on our environment as well as long-term value creation.”

The company operates wholesale data centers in Dallas-Fort Worth, Northern Virginia, Phoenix, and Salt Lake City markets. In April it broke ground on a 48MW facility in Chicago, Illinois, and in March opened a second Salt Lake City facility in Utah.

“While no one company or organization can solve the world’s sustainability challenges, Aligned’s adaptive data center platform is instrumental in reducing environmental impact while lowering the total cost of ownership for customers — a win-win — and it’s gratifying that our relationship banks and investors recognize this by facilitating our ability to respond to continuously increasing demand,” added Aligned CEO Andrew Schaap.

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