CyrusOne has unlocked access to nearly $8B in debt financing to build new data centers as developers race to meet demand brought on by artificial intelligence.
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The warehouse credit facility will help the company fund development and expansion projects across the U.S., Bloomberg reported. It comes on the heels of a $1.8B revolving credit facility the company tapped earlier this year, putting its total debt pipeline at nearly $10B in 2024.
The loans are sustainability-focused, and pricing of the facilities will ultimately depend on the company meeting certain emissions targets. Morgan Stanley, TD Securities and KKR Capital Markets arranged the warehouse credit facility, while Wells Fargo served as lead arranger for the revolving line, according to Bloomberg.
CyrusOne is a real estate investment trust backed by KKR & Co. and Global Infrastructure Partners. It has designed, built and operated more than 50 data centers across the U.S. and Europe.
The company is among a growing number of data center operators rapidly expanding their portfolios amid the rise of AI. It recently submitted plans to a Chicago suburb for two new data centers totaling more than half a million square feet. It is also expanding a 90-acre campus in the Dallas area.
The high-powered computer equipment needed to power artificial intelligence essentially renders older data centers obsolete. Retrofits are extremely costly, which means new development is almost always required. Dozens of new purpose-built facilities have now broken ground, a trend that is expected to drive a 160% increase in power demand by 2030.
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