December 22, 2017

Sabey Data Centers announces expansion plans after closing USD 675M in financing round

The expansion aims to meet the high demand of customers who seek quick deployment of data center space.

DC Blox

American data center company Sabey Data Centers have announced that they will be expanding their data centers in the Ashburn and Quincy regions of the United States after raising USD 675 million in its latest financing round. Sabey Data Centers said that the decision to expand its data centers was driven by market forces, with customers in the wholesale data center market looking at quick methods of deploying data center space.

According to Sabey, they have already arranged USD 250 million to facilitate the construction of these data centers. They further added that the trend of moving on campus (of the data center) and then building up step-by-step is slowly dying.

Sabey further feel that this move is critical when it comes to competition. They added that the term loan of USD 425 million will be used to refinance the property-level debt into a corporate facility. Giving some perspective on this strategic move, Rob Rockwood, President of Sabey Data Centers said:

From a strategic perspective, this transaction will provide the capital we need to stay ahead of market conditions. The data center development market is extremely active, especially with prospective tenants who are demanding large blocks of inventory as a condition for entering into a lease deal.