By David Gross
Capital keeps pouring into data centers from diverse sources and in a variety of forms. It is hard to find an industry that attracts such a wide mix of private equity, public equity, unsecured bank debt, preferred stock, mortgage loans, capital leases, venture capital, and public debt financing. Fresh off the news that DuPont Fabros was issuing $169 million of preferred stock, Phoenix-based i/o Data Centers announced that it has raised $200 million of debt, with $130 million of unsecured credit coming from Wells Fargo, and a $70 million secured facility from Caterpillar Financial Services.
A private company, i/o Data Centers did not disclose the interest rate they're paying. The proceeds will be used to deliver 35 Megawatts of capacity over the next 12 months, and while not mentioned explicitly in the announcement, the Caterpillar financing is likely for new diesel generators.