US colocation firm DataBank has secured a $725 million credit facility.

The company this week announced it has established the new facility to finance its ongoing and future data center construction projects.

The facility is supported by a group of 14 digital infrastructure banks.

DataBank said the new capital will fund ongoing expansion in existing markets including on its campuses in New York, Denver, Minneapolis, Salt Lake City, and Dallas.

Interest on the facility will be tied to sustainability goals. The facilities being financed will meet specific sustainability criteria for water conservation, carbon emissions reduction, and a low Power Usage Effectiveness (PUE).

This is the second tranche of sustainability-linked financing for the company, following a $456 million green bond secured in February.

"New and emerging AI applications have created unprecedented demand for DataBank's data center capacity," said Kevin Ooley, DataBank's president and chief financial officer.

"This new credit facility will allow us to meet that demand more quickly by shortening financing and construction timelines across all our campuses, but especially as we ramp up activity in the new ones we've announced in Northern Virginia and Atlanta."

TD Securities was the administrative agent, joint lead arranger, and joint bookrunner in the transaction. Citizens Bank, CoBank, Deutsche Bank, First Citizens, and Société Générale were joint lead arrangers and joint bookrunners for the transaction with JP Morgan, Nomura Securities, RBC Capital Markets, and Regions Bank joining as joint lead arrangers.

Bank of America and Goldman Sachs were co-documentation agents. Cadence Bank and Preferred Bank supported the transaction as well. Jones Day was DataBank's legal advisor for the transaction.

Whether general-purpose sustainability-linked loans or project-specific green bonds, sustainability-linked financing is quickly becoming a common trend amongst data center and telco firms.