Data center operator Cologix has raised $525 million through an asset-backed securitization (ABS) to fuel its interconnection expansion.

The debt security, supported by Deutsche Bank Securities, spans a five-year fixed term and is backed by its COL4 data center on its campus in Columbus, Ohio, which was completed last May.

Cologix said the proceeds will be used to scale its Scalelogix platform, a series of hyperscale Edge data centers, not too dissimilar to Equinix’s xScale offering, providing interconnection and Edge services across access points in its facilities.

The firm already operates multi-tenant hyperscale data centers in Columbus, Ashburn, and Minneapolis, as well as Montreal and Toronto in Canada.

Laura Ortman, Cologix’s CEO, said: “This financing ensures we’re well-positioned to meet the needs of cloud providers, enterprise, and AI customers seeking reliable, high-density interconnection at the Edge.”

The ABS financing is Cologix’s fourth in five years, having conducted similar transactions in 2021, 2022, and 2023.

The firm also secured $1.5 billion in debt and equity financing last October to further its plans to build “future-ready interconnection hubs.” Among those hubs is an eight-building campus under construction in Licking County, Ohio, which the operator previously said it will invest some $7 billion into the project.

“This transaction demonstrates the strength of our balance sheet, the continued support of our investor base, and the market’s confidence in our long-term strategy,” said Scott Schneider, Cologix’s CFO.

“As we kick off our next wave of growth, this financing will help us scale critical infrastructure to meet the increasing demands of hyperscale and inference AI applications.”

Cologix’s Scalelogix scale-out comes after it recently teamed up with AI cloud provider Lambda to offer Nvidia Blackwell-powered AI clusters.

Located in its COL4 facility, the clusters are powered by Nvidia HGX B200s. Enterprises can leverage them either self-service or provisioned via Lambda's GPU flexible commitment model.