RagingWire, a Sacramento, California-based data center provider, has raised US$230m in debt from a banking syndicate led by existing investors Bank of America Merrill Lynch and Comerica Bank, as well as six other banks that were new to the company.

Mark Morrow, the company’s CFO, said the bulk of the new credit facility will be spent on building out data center space that has already been contracted for. “We've got an awful lot of pre-sold space and power,” he said.

This is while its campuses in Sacramento and Ashburn, Virginia, are near capacity. The company has technically sold out the two existing buildings in Sacramento and is planning to start construction of the third one – a 14.4MW build-out – in the coming weeks, Morrow said.

RagingWire has sold out the first 3.6MW phase in Ashburn and is now on the next phase of similar capacity.

The company has also recently promoted Doug Adams, who led its sales and marketing effort, to the role of chief revenue officer. In another promotion announcement, Jason Weckworth, RagingWire's former VP of data center operations, became the company's COO.

The provider currently has about 20MW of data center capacity contracted for but not yet built, Adams said. “That's the greatest backlog we've seen as a company.”

He attributed the success to RagingWire's design and location (Sacramento is one of California's earthquake-free alternatives to the Silicon Valley) as well as to market conditions in general. “Overall, in our industry, all providers will tell you that we're seeing a watermark rise and everybody's having success,” he said.

This, customer backlog and well-known brands as customers have all made for a relatively easy time raising low-cost capital.

“What banks love about us is we have contracts with some of the best companies around the US,” Morrow said. “They love recurring revenue models.”