CyrusOne’s new warehouse line is the latest in a string of structured debt deals used by data centre firms to fund the AI revolution.
CyrusOne has secured a $7.9 billion line of credit as it races to build more data centres to meet the demand from the artificial intelligence boom.
It’s the second sustainability-linked deal in the past three months for the KKR & Company and Global Infrastructure Partners-backed company after completing a $1.8 billion revolving credit financing in May.
The data centre firm now has access to up to roughly $9.7 billion of debt capital.
The rise of AI has turbocharged demand for bigger data centres. Companies have been pouring billions of dollars into building the infrastructure to store and process information needed to run AI applications.
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CyrusOne’s new warehouse line is the latest in a string of structured debt deals used by data centre firms to fund the AI revolution. Others have turned to the asset-backed securities market.
The credit facility will provide CyrusOne with “attractively priced capital and enhanced liquidity,” Fran Federman, Chief Investment Officer.
The data centre REIT, which designs, builds, and operates more than 50 data centres in the US and Europe, will use the credit line primarily to fund development projects in the US, while the global revolving credit facility will be used for working capital and for general corporate purposes.
The pricing on the debt facilities will be adjusted based on the firm achieving its emission reduction targets – CyrusOne is striving for climate neutrality by 2030.
Morgan Stanley, TD Securities, and KKR Capital Markets were the lead arrangers for the warehouse credit facility while Wells Fargo served as the lead arranger for the revolving line.
