US data center firm EdgeCore Digital Infrastructure has secured nearly $2 billion in debt.

The wholesale developer, owner, and operator this week announced the completion of a $1.9 billion debt financing transaction to fund scalable development on its campus in Mesa, Arizona.

EdgeCore Mesa Phoenix Arizona PHO1.jpg
– EdgeCore

The financing is comprised of a limited-recourse senior secured term loan, a revolving senior secured letter of credit facility, and an accordion feature that will fund future development.

Financing for the project was structured as a Green Loan, with ING Capital LLC as the sole Green Loan Structuring Agent.

"The development of scalable data center campuses designed to support the density requirements of hyperscalers is EdgeCore's sole focus, and one that we address with sustainable construction, operations, and business practices in mind," said Julie Brewer, SVP of Finance, EdgeCore Digital Infrastructure. "To this end, our Phoenix data center campus in Mesa, Arizona, is being developed using debt financing from this Green Loan."

EdgeCore broke ground on the first 200,000 sq ft (18,580 sqm), 26MW Mesa data center – known as PHO1 – in 2018. EdgeCore acquired around 15 acres of land in Mesa from Meta last year and announced plans to expand the existing campus shortly afterwards. Two further buildings totaling 206MW are in development.

At full build-out, EdgeCore said its 40-acre campus will be capable of supporting a minimum of 450MW of critical load across 3.1+ million square feet (288,000 sqm) of space.

The company said the transaction provides a template for several future planned financings across the EdgeCore portfolio, and was conducted in conjunction with its owner, Partners Group.

"The construction financing for the Mesa campus is an important milestone for EdgeCore," said Fentress Boyse, member of management, Private Infrastructure Americas, Partners Group. "This represents the first of many financings EdgeCore will pursue to support its ambitious capital plans and customers' needs. The broad participation and strong demand from the banking partners associated with this financing is a validation of EdgeCore's differentiated approach and bright future. This financing also represents the largest Green Loan by a Partners Group portfolio company to date."

The transaction was led by a consortium of coordinating lead arrangers including MUFG, TD Securities, ING Capital LLC, Scotia Bank, and Santander. MUFG served as administrative agent. Davis Polk Watson served as the borrower's/sponsor's counsel, and Milbank served as underwriters' counsel.

Launched in 2018, EdgeCore has data center campuses across the US in operation or development spanning Phoenix, Arizona; Reno, Nevada; Virginia; and Silicon Valley, California.

The company was acquired by Partners Group in 2022 with plans to invest up to $1.2 billion to fund the acquisition and build-out of existing and future data center sites.