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Kao Data completes £206m debt raise for European expansion

Written by Mon 29 Jan 2024

UK data centre operator, Kao Data, has completed a £206 million ($261 million) debt raise through Deutsche Bank. The debt raise has an accompanying accordion facility extendable to £356 million ($452 million).

Kao Data said the debt raise will fast-track the build-out of its KLON-06 data centre in Slough and accelerate contracted developments with cloud, artificial intelligence (AI), and financial services clients.

Deutsche Bank has provided financing to drive the expansion of the business in line with growing customer demand for GPU-powered computing. The funding will support Kao Data’s expansion into next-tier markets across the UK and continental Europe. 

“The success of our new debt raise is a testament to the growth of our business, our reputation for industry-leading operations and technical delivery, and both the scale and demand for world-class infrastructure, engineered for AI,” said Matthew Harris, Chief Financial Officer at Kao Data.

A portion of the new funding will repay UK-based responsible investment management firm, Downing LLP. Downing invests across various sectors, including renewable energy, infrastructure, healthcare, operational real estate, and property development. Downing has been a partner with Kao Data since its initial development debt requirements. 

Head of Institutional Business Development at Downing, Tom Phillips, said Downing has believed in Kao Data’s expertise, mindset, and vision for growth since the company’s first meeting with Kao Data.

“During the term of our investment, Kao Data has proved itself as an excellent example of what we look for in the businesses we like to back: a high-quality management team with a compelling business case,” added Phillips.

A Year of Growth for Kao Data

Earlier this month, Doug Loewe was appointed as the new CEO of Kao Data. Loewe will lead the company’s growth strategy across the UK and continental Europe, focusing on expanding its high-performance colocation platform into new territories and data centre hubs.

In May 2023, Kao Data announced a new £350 million ($444 million) investment into a Greater Manchester data centre. Kao Data secured a 39,000sqm ex-industrial site at Kenwood Point for sustainable redevelopment. The Tier II data centre is expected to be operational in late 2025.

In November 2023, Kao Data announced the completion of its KLON-02 facility in Harlow. The 10MW facility is aimed at supporting advanced computing and AI and is reportedly powered by 100% renewable energy.

Kao Data’s advanced data centre portfolio now comprises over 160MW of IT capacity, encompassing operational, under-development, and planned facilities.

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Written by Mon 29 Jan 2024

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