IO, a leading global provider of Data Centre Services, has raised $445 million in debt capital from Deutsche Bank and $60 million in additional growth capital from an affiliate of Macquarie Capital.
The proceeds from the Deutsche Bank loan allowed IO to refinance its existing U.S. indebtedness. In addition, IO has exercised its purchase options to acquire the land and buildings underlying its IO.New Jersey and IO.Ohio data centres. IO will use the proceeds from the Macquarie Capital transaction to further its international and domestic growth – including investment in its newest London location, and for general corporate purposes.
IO also announced that it purchased approximately nine acres adjacent to its Phoenix data centre campus and that it has plans to substantially expand capacity at that campus. IO plans to build a three-story data centre to support its colocation and cloud services. The new data centre will have over 100 MVA in total capacity, doubling the amount of capacity it currently offers in the Arizona market. IO plans to break ground on the new building in late 2016 and open in 2017, deploying one module at a time.
“This capital raise reflects the excitement in the worldwide data centre market – the physical layer of the global Internet,” said George Slessman, IO chief executive officer. “We intend to continue to disrupt and revolutionize the data centre industry by reinventing the colocation data centre by bringing web scale to any scale. This new capital will help fuel our growth and to keep pace with global customer demand.”
“IO’s ability to execute a large-scale capital raise in the current market environment represents a substantial vote of confidence in IO and directly benefits our customers,” said Anthony Wanger, IO president. “IO attracts capital because we attract and grow key customer relationships.”
“This is fantastic news for IO at a global level, and will allow for continued investment in the UK,” said Nigel Stevens, MD at IO.London. “IO has been operating in the UK for less than a year, but this capital raise demonstrates our strength as a global data centre provider.”
IO launched its London data centre in 2015. With more than 10,000 square meters, the Slough-based facility features highly resilient power, a dedicated substation and houses the first international deployment advanced ECO modules. This delivers ultra-efficient performance by using free, outside air, backed by traditional chilled water technology.
