UK-based data center company Kao Data has completed a £206 million ($263m) debt raise from Deutsche Bank.

In addition, Kao has an accompanying accordion facility which is extendable to £365m ($466m), also via Deutsche Bank.

kao data center london night.jpeg
– Kao

The debt financing will enable Kao to progress with its already contracted developments with customers, as well as the build-out of its KLON-06 data center in Slough.

In addition, the funding will help Kao's expansion into new markets in the UK and across Europe.

A portion of the funding will also go towards refinancing existing lenders, enabling Kao Data to consolidate its debt with a single large financial services organization. This includes Downing LLP, a UK-based investment firm that has partnered with Kao since its earlier development debt requirements, starting in 2017.

Matthew Harris, CFO, Kao Data, said: “I’d like to thank our lenders for their trust in our philosophy and ambition, which has been fully vindicated during the last decade, and all who have played an instrumental part in the evolution of the Kao Data platform. Looking forward, we are delighted to be working with one of the world’s leading digital infrastructure lenders in Deutsche Bank.”

In October of 2023, Kao's investors Infratil and Legal & General Capital upped their stakes in the company in a new 'capital structure' to provide incremental equity investment in Kao's growth plans.

In December 2023, Kao completed its second Harlow data center while simultaneously submitting plans for a Stockport, Manchester facility.

Kao Data was founded in 2014, and specializes in high-performance data centers for advanced computing, and currently has an operational combined footprint of 40MW, and a total planned footprint of 160MW. The company houses the Nvidia Cambridge-1 supercomputer in one of its data centers at the Harlow campus.