EdgeConneX, a global data center provider, has successfully secured $1.9 billion in sustainability-linked financing to support its expansion across the EMEA region, with interest rates tied to its environmental sustainability achievements.
This marks a significant shift from project-based funding to a more comprehensive structured corporate debt package following its initial $2.9 billion sustainability-linked financing in 2022.
Founded in 2009 and acquired by EQT Infrastructure in 2020, EdgeConneX specializes in providing scalable data center solutions. This latest deal provides EdgeConneX with enhanced financial flexibility and a greater capacity to support projected growth throughout the EMEA region. Through a rapidly growing European footprint of over 20 facilities, EdgeConneX continues expanding its regional presence, driven by strong global customer demand for cloud and AI infrastructure.
A significant highlight of this funding arrangement is the inclusion of sustainability-linked margin adjustments. This adjusts interest rates based on the company’s progress towards their environmental targets.
The company’s sustainability goals include achieving carbon neutrality, eliminating the waste and water footprint, and powering its entire data center platform with renewable energy sources by 2030.
This transaction was highly sought after, attracting substantial interest from both existing and new lenders. The deal was marked by significant oversubscription from existing and new lenders while solidifying EdgeConneX’s commitment to the company’s sustainability goals. This deal also elevated the company’s total green investments to over $7 billion over the last two years to support its global digital infrastructure growth.
Joe Harar, CFO of EdgeConneX, highlighted the deal’s success as a reaffirmation of their industry leadership and a milestone in their commitment to sustainability, expressing enthusiasm for the future opportunities this financing will create for the company and its stakeholders.
EdgeConneX CFO Joe Harar said:
The reception of this transaction reconfirms 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. It showcases our ability to replicate this success on a global scale. This is a significant milestone in our journey towards leading the industry in sustainable practices, and we are excited about the future possibilities this opens up for EdgeConneX and our stakeholders.
Joe Harar, EdgeConneX CFO
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. Our team’s exceptional achievement was accomplished through dedicated efforts in cultivating a broad range of lending relationships, as well as close cooperation with the coordinators, advisors and EQT Infrastructure. This is a testament to the collective team’s expertise and hard work.
Eelco Holst, Senior Vice President – Corporate Finance, EdgeConneX
