CyrusOne Inks $7.9B Credit Line in AI Data Center Push

(Bloomberg) -- CyrusOne has secured a $7.9 billion line of credit as it races to build more data centers to meet the demand from the artificial intelligence boom.

It’s the second sustainability-linked deal in the past three months for the KKR & Company and Global Infrastructure Partners-backed company after completing a $1.8 billion revolving credit financing in May.

The data center firm now has access to up to roughly $9.7 billion of debt capital, the company said in a statement seen by Bloomberg on Monday. 

The rise of AI has turbocharged demand for bigger data centers. Companies have been pouring billions of dollars into building the infrastructure to store and process information needed to run AI applications.

CyrusOne’s new warehouse line is the latest in a string of structured debt deals used by data center firms to fund the AI revolution. Others have turned to the asset-backed securities market.

Read more of the latest AI data center news

The credit facility will provide CyrusOne with “attractively priced capital and enhanced liquidity,” Fran Federman, chief investment officer, said in the statement. 

The data center REIT, which designs, builds, and operates more than 50 data centers in the US and Europe, will use the credit line primarily to fund development projects in the US, while the global revolving credit facility will be used for working capital and for general corporate purposes, according to the statement.

Related:Nvidia AI Chip Supply Is a ‘Huge Bottleneck,’ EU Competition Chief Warns

The pricing on the debt facilities will be adjusted based on the firm achieving its emission reduction targets – CyrusOne is striving for climate neutrality by 2030.

Morgan Stanley, TD Securities, and KKR Capital Markets were the lead arrangers for the warehouse credit facility while Wells Fargo served as the lead arranger for the revolving line.