US data center firm Flexential has completed an $800 million asset-backed securities (ABS) offering to support its growth and investment strategy.

ABS is a type of financial investment that is collateralized by an underlying pool of assets – in this case, data centers. The financing includes $605m of notes with a five-year anticipated repayment date and $195m of notes with a seven-year anticipated repayment date.

Proceeds will be used to repay a portion of Flexential's outstanding ABS debt and support the company's long-term financing strategy.

"Completing this ABS offering reflects investor confidence in Flexential's vision and the strength of our business model," said Ryan Mallory, CEO of Flexential. "It allows us to keep expanding capacity for enterprise and AI workloads, while continuing to deliver reliable infrastructure for the industries driving digital growth."

Issued under Flexential's Green Finance Framework, this is the company's sixth and seventh series of ABS notes offered under its ABS master trust.

"This transaction provides long-term flexibility to manage our capital structure and fund development as we pursue high-demand opportunities," said Garth Williams, Flexential CFO. "Extending our ABS program under the Green Finance Framework reinforces our business model belief that strong financial performance and environmental responsibility can operate in parallel."

Flexential was formed in 2017 after investment firm GI Partners merged data center firms Peak 10 and ViaWest. In August of this year, GI reinvested in Flexential and secured new external investment for the company in order to fund the development of its data centers across the US. The company currently operates 40 data centers across 18 US markets and has more than 330MW of built and under-development capacity.