DC Blox Secures Equity Funding and Green Loan for Data Center Expansion
US data center operator DC Blox has announced the successful acquisition of new equity investments and a green loan aimed at bolstering its infrastructure and construction projects. This week, the company revealed that it raised additional equity capital from both existing and new investors, led by Post Road Group and Bain Capital Credit. The funding is expected to facilitate the deployment of over $1 billion in total capital for future construction and powered land banking initiatives across the Southeastern United States.
DC Blox Raises New Investment
Jeff Uphues, CEO of DC Blox, expressed confidence in the company’s ability to meet the increasing demand for digital infrastructure. “The financial support from our partners demonstrates confidence in our ability to satisfy the rapidly growing digital infrastructure needs of our customers,” he stated. He further elaborated on the company’s initiatives, highlighting various projects, including:
- Edge Market Data Centers: Designed to enhance local connectivity.
- Myrtle Beach Cable Landing Station: A strategic hub for internet traffic.
- Regional Fiber Network: Facilitating high-speed data transfer.
- Hyperscale Campuses: Featuring multiple facilities with over 150MW capacity.
Debt Conversion
As part of this funding round, Bain Capital Credit and Post Road Group will convert their existing debt positions into equity in DC Blox. Michael Bogdan, Managing Partner at Post Road Group, commented, “As DC Blox addresses the significant digital infrastructure growth opportunities by building and operating new hyperscale facilities, it remains a preeminent leader in the Southeastern US data center landscape with a unique combination of deep regional expertise and vertically integrated infrastructure development capabilities.”
Green Loan for Energy-Efficient Data Centers
In addition to the equity investment, DC Blox secured a $265 million green Senior Secured Credit Facilities (SSCF) loan from its Joint Lead Arrangers: First Citizens Bank, ING Capital, and Nomura Securities International. This green loan is earmarked for the development of multiple pre-leased, hyperscale-driven edge sites and energy infrastructure capable of supporting 216MW of utility power for one of its recently contracted projects.
Key Highlights of the Green Loan:
- Amount: $265 million
- Purpose: Financing energy-efficient data centers
- Environmental Commitment: Supports the reduction of digital infrastructure’s environmental impact
Cindy Jia, ING Head of Sustainable Finance for the Americas, remarked, “The green loan for DC Blox underscores our commitment to supporting energy-efficient data centers, a critical step in reducing the environmental impact of digital infrastructure. By financing such energy-efficient assets, we’re helping drive innovation and meaningful progress toward a low-carbon future.”
Financial Partnership Structure
Guggenheim Securities acted as the sole placement agent for DC Blox in the SSCF transaction. The financial partnership includes:
- Joint Lead Arrangers: First Citizens Bank, ING, and Nomura Securities International
- Administrative Agent: First Citizens Bank
- Green Loan Structuring Agent: ING
DC Blox operates data center facilities across several key locations, including:
- Atlanta, Georgia
- Birmingham and Huntsville, Alabama
- Chattanooga, Tennessee
- Greenville and Myrtle Beach, South Carolina
The company is actively developing several other projects to enhance its digital footprint and meet the growing demands of the market.