Seattle-based Sabey Data Centers, which owns and operates data center campuses in Seattle, Ashburn (VA), Quincy (WA) and Wenatchee (WA), closed a $675 million financing package led by TD Securities, including a $425 million 5-year term loan and a $250 million 5-year revolver.
The company said proceeds of the term loan will be used to refinance existing property-level debt into a corporate facility, while the revolver will be used to fund capital expenditures for data center development and strategic initiatives. Sabey plans to expand its data center campuses in Northern Virginia as well as in Central Washington, which benefits from low power rates and a mild climate ideal for efficient cooling.
“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,” stated Rob Rockwood, President, Sabey Data Centers. “The leasing paradigm has changed. Up to the recent past, data center users would move onto a campus and then build out incrementally, on an ‘as needed’ basis. This is no longer the case.”
