DATA4, a European wholesale data center operator backed by AXA IM, today announced that it has secured €620m in debt financing from Deutsche Bank, Société Générale, and SMBC, to pursue its growth strategy in Europe. Overall, the company now has access to almost €1.0bn of capital to fund and execute its growth plan. Specifically, DATA4’s goal is to double its revenue by 2024.
DATA4 is supported by equity capital from AXA Investment Managers’ Real Assets (AXA IM) division and PFA, which is a pension fund from Denmark. Specifically, PFA purchased a 20% stake in the DATA4 data center business, from AXA IM, in May 2020.
DATA4 – Data Centers and 2024 Growth Plan
Currently, DATA4 operates 21 data centers, representing over 150 megawatts of power capacity. Collectively, these data centers comprise 785k sqft (73k sqm) in the markets of Paris, Milan, Madrid, and Luxembourg.
By 2024, DATA4 intends to build 21 additional data centers in markets including Paris, Milan, and Madrid, to bring its total portfolio to 42 facilities. In order to achieve this target, the company plans to deploy more than €650m of capital into data center development. Below we breakdown DATA4’s key areas of expansion by market:
DATA4’s largest campus is located 15.5 miles (25 kilometers) south of Paris in Marcoussis. In Paris, DATA4 operates 13 data centers, representing 105 megawatts of power capacity.
One of DATA4’s key ambitions following its recent debt capital raise is to double the power capacity of its Paris campus. Specifically, the company plans to build another 11 data centers in Paris, which will bring its total power capacity for the Paris market to 200 megawatts. Indeed, DATA4 claims that following completion of this build-out, the Paris campus will possess the most power capacity for a single campus in Europe.
DATA4 owns the second largest telecommunications node in Italy. Specifically, in Milan, DATA4 operates 5 data centers, representing 40 megawatts of power capacity.
With funding secured, the company plans to add a further 5 data centers at its Milan campus. By 2024, DATA4 intends to operate 10 data centers, which comprise 60 megawatts of power capacity.
DATA4’s Madrid campus is its newest, and thus far, it has only opened 1 of its 4 data center modules at the Alcobendas site. The company plans to grow this Madrid campus to be 4 data centers, which represent 20 megawatts of power capacity.
DATA4 operates 2 facilities, representing 4 megawatts of power capacity in Luxembourg. Collectively, these data centers comprise 32k sqft (3.0k sqm). Overall, Luxembourg does not appear to be part of DATA4’s 2024 growth plan, with the current facilities being deemed sufficient.
DATA4 – European Expansion – More Debt and Equity Required
DATA4 also notes that it is seeking to expand its footprint internationally, particularly in Germany, Central Europe, and Scandinavia. It is unclear whether any further European expansion by DATA4 would be funded through today’s debt financing and existing equity.