As sustainability continues to become an increasingly important issue for data center owners and operators, many are tying their financing into ESG-related goals. The likes of Green Bonds see proceeds going towards specific green projects, while Sustainability-Linked Loans see interest payments tied to specific targets such as PUE or water use.
Such financing options have been adopted by cloud and data center companies including Equinix, Digital Realty, Atos, Baidu, AirTrunk, and telcos such as Telefonica, NTT, and Verizon.
US operator Aligned’s whole debt pile – more than $3 billion – is entirely made up of sustainable-tied financing. Aligned’s VP of Finance, Matthew Chambliss discusses the company’s reasoning and journey to adopting sustainable financing.