DuPont Fabros Technology, one of the largest developers and providers of wholesale data center space in the US, has closed a US$195m loan, the company announced Monday.
The announcement is a recent example of the steady stream of investment that has been flowing into the data center market this year. While companies of DuPont's caliber (and bigger, such as Digital Realty Trust) have not had too much of a hard time raising funds for expansion, the trend of capital availability for data center firms with strong management teams and good records of selling space is true across the board.
In June, for example, a smaller data center wholesaler ByteGrid announced $25m in credit and acquisition of a large data center building in Cleveland. In the preceding month, QTS, a large provider of both wholesale and retail data center space expanded its credit facility by $135m, and IO, Phoenix-based provider known for its IO.Anywhere data center modules, said it had raised $260m in credit.
The trend we reported on in March continues: debt financing is available for data centers and many lenders are on the look-out for good deals. The demand from both debt and equity markets, however, is for companies that can show that they have built and filled data centers before.
As Steve Lee, managing director at Bank Street Group, told us at DatacenterDynamics Converged in New York back in March, lenders were generally looking for data centers with EBITDA above $10m and construction projects with anchor tenants already signed up.