Stack Infrastructure raises $250M in new debt financing

INFRA

Data center construction company Stack Infrastructure Inc. today announced that it has secured $250 million in fresh debt financing.

The financing was raised in the form of securitized notes. A securitized note is a loan that has been turned into a marketable security, meaning it can be sold to investors. The loans that comprise Stack Infrastructure’s latest $250 million raise carry a 5.9% annual interest rate.

“STACK has again proven itself a highly desirable partner and continues to leverage investor confidence to raise capital in a rapidly evolving interest rate environment,” said Heather Paduck, the Chief Financial Officer of Stack Infrastructure’s Americas division. “This successful transaction affirms our position as an industry leader with a consistently proven growth strategy and shows our commitment to providing capacity to our clients when demand is at its highest.”

Denver-based Stack Infrastructure builds data centers for cloud providers, managed service providers and other companies. It can find a site suitable for hosting a company’s planned data center as well as build the facility. However, the task of setting up the computing equipment inside is left to the customer.

Stack Infrastructure builds three types of facilities for clients.

The company constructs powered shells, empty data centers based on a standardized design. The standardized design removes the need for customers to develop custom building blueprints. The result, according to Stack Infrastructure, is that cloud facilities can be built more quickly and at a lower cost.

Stack Infrastructure also offers so-called HyperStack facilities, data centers that customers can customize according to their requirements. The data halls where servers are kept and other sections of a HyperStack facility are available in multiple configuration options. If needed, customers can also implement more fine-grained customizations. 

The third pillar of the business is commissioned capacity. That’s data center capacity the company leases in existing facilities. A cloud provider expanding into a new market, for example, can temporarily keep its servers at such a facility while its new data center is being built.

Including the $250 million financing round announced today, Stack Infrastructure has raised $2.1 billion in debt financing since launch. The company was formed in 2019 after an investment firm called IPI Partners merged two data center providers.

Using its pool of debt financing, Stack Infrastructure is currently developing 4 million square feet of new data center capacity. It’s planning to construct additional facilities around the world further down the line. 

Last November, Stack Infrastructure broke ground on an expansive 40-acre data center campus in Northern Virginia. The following month, the company announced plans to build a similar campus in Japan. Both hubs are expected to host multiple data centers once construction is complete. 

Image: Stack Infrastructure