Data4 raises £1.9 billion in debt to expand European presence
Written by Rebecca Uffindell Wed 18 Oct 2023Paris data centre campus, Data4
European data centre operator Data4 has announced a debt raise of £1.9 billion ($2.32 billion) through financing, with the option to extend the total to £2.7 billion ($3.37 billion).
The Brookfield-owned company said the funds will help consolidate its position within the data centre market.
Data4 has used a first tranche of £1 billion ($1.26 billion) to pay off or replace their previous debts.
A second tranche of £864 million ($1.05 billion) will be used for the acquisition of new sites and the construction of future data centres. Included are the existing and planned data centre campuses in France, Germany, Spain, Italy, and Poland.
Additionally, Data4 said the debt financing will also enable the company to pursue the target of £694 million ($973 million) turnover by 2029.
Chief Financial Officer of Data4, Claire Vandromme, said she was delighted with the bank financing, which shows the ‘confidence of the financial institutions in Data4’s development plan’.
“We plan to develop our existing markets and take the lead in the European data centre market, without excluding the establishment in other countries of the continent,” said Olivier Micheli, President of Data4.
Data4 currently operates 33 data centres across its European platform. Brookfied Infrastructure Partners acquired Data4 and Compass earlier this year.
CEO of Brookfield’s Global Data Centre group said the deal increased the company’s capacity to more than 485MW.
Due to the deal, Brookfield said its expects to ‘own and operate one of the largest global hyperscale data centre platforms’ in the world.
Over the next three yeats, Brookfield said it will plan to develop close to 1GW of data centre capacity. From developing this increased capacity, Brookfield expected to increase last year’s EBITDA by more than five times.
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Written by Rebecca Uffindell Wed 18 Oct 2023
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