DatacenterDynamics by Country

Country missing? Please select your nearest region...

Data center colocation services provider QTS has raised US$270m in additional credit facility from a group of financial institutions to fund business growth the company said earlier this week.

The funding was provided by companies that had landed to QTS before and by companies new to the provider. The news is yet another sign that the capital markets are more confident in the commercial data center sector’s ability to deliver results.

Both the amount of available capital and the amount of firms interested in providing it has been increasing steadily over the past several years.

QTS CFO Bill Schafer said the company’s new credit facility was a sign of confidence financial institutions had in the future of QTS.

“The increased credit capacity enhances QTS' financial flexibility as the company continues to expand its data center facilities in Atlanta, Richmond, Jersey City and Santa Clara,” Schafer said. “The credit facility will also allow us to repay existing debt, fund development to meet customer demand in other potential markets, and focus on future opportunities.”

The new credit facility expands QTS’s existing credit facility to $440m. The entire facility is backed by two of the company’s data centers in the Atlanta metro. One of the facilities measures 990,000 sq ft.

The last time the company increased its credit facility was in March 2011, when INA and Caterpillar came on board and the growth capital available to the company increased by $45m.

QTS has 12 data centers in seven US states. It operates and manages 3.1m sq ft of data center infrastructure, serving about 600 customers, according to its website.