Wholesale data center services provider Vantage Data Centers closed on a $225 million debt financing for growth and expansion plans in its three markets: Northern Virginia, Silicon Valley and Quincy, Wash.
Vantage has seven operational data center facilities, and two additional facilities under construction. The company provides flexible data center solutions to hyperscale cloud and enterprise customers. The company said in a statement that it will use the funds in a structured debt financing designed to accelerate growth in its three markets.
“As the market opportunity continues to accelerate, Vantage has explored both new and traditional financing options to support our growth strategy, and we’ve been pleased with the response from the investment community,” Sharif Metwalli, Vantage’s CFO said in a statement. “This transaction provides us with additional dry powder to finance our growth in existing and new markets, meeting our hyperscale, cloud and enterprise customers where they need the wholesale, sustainable facilities we provide.”
— Vantage Data Centers (@VantageDC) December 3, 2018
This announcement comes a year after Vantage purchased 42 acres to build a campus in Ashburn, Va., where five data centers will live, totaling more than 1 million sq. feet. The Ashburn campus will be equipped with customer office space, conference rooms and large-scale break room facilities with food, games, entertainment and more. The facility will also have secure storage with easy access between data halls. Construction began in March 2018 and the Ashburn campus should start being available to the NoVa data market during the first quarter of 2019, the company said in a statement.
Ashburn, Va., is a hotspot for data centers, according to a report published earlier this year by the Northern Virginia Technology Council that deemed Virginia as the “world’s largest market” for data centers, Technical.ly DC previously reported. As of 2016, the industry brought 43,275 jobs to the Commonwealth, equating to $3.2 billion in labor income and $10.2 billion in economic output, the report. titled “The Economic and Fiscal Contribution that Data Centers Make to Virginia,” states.
Mark Freeman recently joined the Vantage Data Centers team last month as vice president of marketing, where he will focus on driving Vantage’s national brand presence and go-to-market strategy, with an early focus on the company’s campus in Northern Virginia, Technical.ly DC previously reported. The company is also hiring in multiple positions to employ its Ashburn campus as construction is underway.