QTS Raises $100M to Fund Data Center Construction

Data center service provider QTS Realty Trust has expanded its credit facility by $100 million, money the company said will help it fund data center construction around the U.S.

QTS is expanding capacity at its already operating sites in Atlanta, Dallas, New Jersey, Northern Virginia, Silicon Valley, and Sacramento, California. It also recently bought a former newspaper printing plant in Chicago it plans to convert into a data center – its first in that market.

Access to new capital brings the company’s total unsecured credit facility to $650 million. New credit facility has an accordion feature that enables the company to expand it by up to $200 million with additional commitments.

KeyBank National Association led the consortium of banks that participated in the deal to fund the company's data center construction. The syndicate consists of 17 institutions, including Bank of America, Deutsche Bank, and Regions Bank.

QTS went public as a real estate investment trust in October 2013.

The company has been expanding national presence by buying, redeveloping or expanding properties. The Chicago Sun-Times plant was only the most recent example.

The Dallas-Fort Worth data center it launched in October was a former semiconductor plant. In July, QTS bought a McGraw Hill Financial data center in New Jersey, leasing a portion of the facility back to the firm and planning to expand capacity to add more tenants there.

“The increased credit facility capacity, extended term and lower interest rates enhance the company's financial flexibility and liquidity as we continue to expand our facilities,” QTS CFO Bill Schafer said in a statement.