Latin American data center firm OData has secured more than $1 billion in new financing.

The company this week announced $1.02bn in green financing. The proceeds will be used for data center projects that “meet the highest standards of sustainability” across Brazil, Mexico, Chile, and Colombia.

Green initiatives will include “energy efficiency targets, renewable energy use, and sustainable construction practices.”

The funding was provided by a syndicate of financial partners, including Apterra, BNP Paribas, Crédit Agricole CIB, Deutsche Bank, MUFG Bank, Ltd., Natixis Corporate and Investment Banking, Nomura, Societe Generale, and SMBC.

The company said the financing was the largest of its kind for data centers in Latin America, and takes OData’s total financing to date to $2.25bn.

“This historic achievement, representing the largest issuance of sustainable data center financing in Latin America, has allowed OData to build a solid financial structure. With these high-quality resources, we're incredibly well-positioned to empower our customers in their digital infrastructure expansion across the region,” says Rafael Bomeny, CFO of OData. “This green financing also reinforces our mission to contribute to Latin America's sustainable development by leading the way in adopting innovative technologies that drive a more efficient future for our customers and communities.”

Founded in 2015 by Brazilian private equity firm Patria Investments, OData was acquired by Aligned Data Centers in May 2023. The company has operational facilities across the Latin American market, including Brazil, Chile, Colombia, and Mexico – with more in development.

The company has started using Aligned’s proprietary Delta Cube (Delta³) cooling solution, initially at sites in Brazil and Mexico.

Sustainability-linked financing is becoming an increasingly popular way for data center firms and telcos to raise funds for projects. With SLLs, companies can secure more favorable interest rates on debt if they achieve certain sustainability targets. With green bonds, companies raise money for select projects that meet pre-agreed sustainability criteria.