Australian data center firm DC Two has raised AU$1 million (US$647,000).

The company announced this week that it has received binding commitments to raise AU$1,000,000 at $0.039 per share, via a two-tranche placement to 'sophisticated and institutional' investors.

The money raised will be used to “accelerate DC Two’s growth trajectory,” including marketing efforts around its Bibra Lake data center.

DC Two’s Managing Director Blake Burton, said: “We are delighted with the outcome of the placement. This marks a major reset for the business, and demonstrates the belief that the Company is positioned to grow alongside its expanding customer base. We have achieved sixth consecutive quarters of recurring revenue growth with very limited capital and resources, and this funding will allow our team to grow revenue, maximize shareholder return and scale our presence in Western Australia and beyond.”

DC Two said the placement was ‘well supported’ and bids received were in excess of what was being offered in terms of number of shares.

It also noted it was canceling the second tranche convertible note offering announced in May 2022, due to the 'lengthy shareholder approval process and requirement for immediate funding to execute growth objectives'.

Established in 2012, DC Two opened its Bibra Lake data center in Perth last year and operates another facility in the nearby Osborne Park. It also occupies space in Vocus’ PerthIX data center as well as in the DXN-owned Secure Data Centre in Darwin.

It also operates several modular facilities co-located with renewable energy plants.