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Vantage Data Centers Snags $3B Loan To Accelerate North American Portfolio Expansion

A global provider of hyperscale data centers is planning to quickly double down on its North American presence by tapping into a $3B green loan that will fast-track the delivery of new facilities.

Vantage Data Centers, which has 12 campuses across the U.S. and Canada, secured the financing through a bank syndicate that includes Wells Fargo Securities, TD Securities, Truist Securities and Scotiabank, according to a news release.

A rendering depicts the company's future data centers.

The revolving credit facility is backed by an initial collateral pool of eight leased and greenfield sites in new and existing markets, according to the release. Those facilities comprise nearly 1.4 gigawatts.

“Our decision to pursue a flexible revolving credit facility allows us to access capital quickly and, therefore, begin development much earlier than project-specific loans, enabling Vantage to meet the ambitious timelines our customers require for critical IT capacity across North America,” Christophe Strauven, senior vice president of capital markets at Vantage, said in a statement. 

Green loans are a tool that could help owners of CRE dramatically reduce their carbon output, theoretically providing a way for lenders to make money by helping borrowers decarbonize their portfolios.

But the financing is infrequently used, a Bisnow investigation found, as both debt providers and borrowers have yet to be convinced that the juice is worth the squeeze.

Vantage is among a relatively small number of developers that have leveraged the tool, which, in addition to covering construction, also includes funding for sustainable features, including water management and pollution prevention, according to the release. This is the company's fifth green loan.

Earlier this year, Vantage clinched a $6.4B equity investment from Digital Bridge and Silver Lake to expand its global portfolio. The company unveiled plans for a 1.7M SF data center in suburban Atlanta last August and has two brownfield sites in California.