A further $1.9 billion in sustainability-linked financing has been successfully negotiated by EdgeConneX, a company offering build-to-suit and build-to-density data center solutions, as part of its efforts to improve its digital infrastructure capabilities throughout EMEA. With this new round of funding, the company’s total green investments over the last two years have risen to an impressive $7 billion.
This is a significant increase from the $2.9 billion in sustainability-linked financing it first secured in October 2022. The latest transaction witnessed an overwhelming response, being significantly oversubscribed by both existing and new lenders. EdgeConneX’s growth ambitions in EMEA are largely driven by the soaring demand for cloud and AI infrastructure globally.
This enthusiasm from the financial community would not only underline EdgeConneX’s robust market position but also its steadfast commitment to sustainability. The financing deal transitions the company from relying on project-based funding to leveraging a more comprehensive structured corporate debt package. This strategic move is set to provide EdgeConneX with the financial agility required to fuel its ambitious expansion plans in the EMEA region, where the company boasts a growing portfolio of over 20 data center facilities.
Sustainability-Linked Financing
The financing deal’s sustainability-linked margin adjustments are a noteworthy feature. These adjustments directly link the interest rate to EdgeConneX’s ability to accomplish certain environmental targets, such as becoming carbon neutral, leaving no trace of trash or water, and using only renewable energy sources to power all of its data centers by 2030. This innovative financing structure would underscore the company’s dedication to integrating sustainable practices into its operational framework.
“The reception of this transaction reinforces our status as an industry leading data center developer and operator and reinforces our belief that responsible growth and operational excellence go hand in hand,” said Joe Harar, CFO of EdgeConneX, expressing satisfaction about the deal. “It demonstrates our capacity to duplicate this achievement globally. This marks an important turning point in our quest to lead the sector in sustainable practices, and we are enthusiastic about the opportunities it presents for EdgeConneX and its stakeholders going forward.”
“With this latest sustainability-linked financing deal, EdgeConneX is rapidly ascending as one of the largest financing issuers in Europe, underscoring our commitment to sustainability and innovation in the data center sector,” said Eelco Holst, Senior Vice President – Corporate Finance at EdgeConneX, emphasizing the deal’s significance. “The remarkable accomplishment of our team was made possible by our committed efforts to develop a wide variety of lending contacts and our close collaboration with the coordinators, advisors, and EQT Infrastructure. This demonstrates the knowledge and diligence of the entire crew.”
Additionally, EdgeConneX achieved the highest position in the Structure Research 2023 State of Environmental Impact study, demonstrating its dedication to sustainability and environmental efficiency. Two renowned Project Finance International (PFI) awards were given to the company in recognition of its innovative work in funding digital infrastructure.
