We advised DataBank on the transaction

Davis Polk advised DataBank special purpose vehicles on an incremental $650 million project financing for the construction of its fourth 60 MW data center located in Red Oak, Texas. The financing comprises $400 million in bank financing and $250 million of private placement debt securities under Section 4(a)(2) of the Securities Act, bringing the total financing package for the project to $2.65 billion. This is the first bank-bond facility in the data center space.

DataBank is a Digital Bridge subsidiary and a leading provider of enterprise-class data center, cloud and interconnection services. Its infrastructure platform consists of more than 65 data centers located within 100 miles of more than 60% of the U.S. population, 20 major interconnect hubs, and “high performance computing-ready” data centers designed to accommodate computing nodes with the most demanding air- and water-cooling requirements.

The Davis Polk infrastructure finance team included partner David J. Penna, counsel Costanza Garcia Laposse and associates Mostafa Al Khonaizi and Scott (Xiantao) Wang. The real estate team included counsel J. Avelina Burbridge and associates Edward Peck, Maria J Budis and Alexa Cibellis. The capital markets team included partner Marcel Fausten and associate Sakiko Nishida. Members of the Davis Polk team are based in the Washington DC and New York offices.

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