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Commercial Observer
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Demand for data center space and services appears to have no ceiling. As a result, investors are pouring into the space that barely existed 10 years ago. Case in point comes via a newly closed $200 million financing vehicle between Prime Data Centers and Cerberus Capital Management. Also for today: Learn about other financing forces driving the data center boom.
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— Tom Acitelli, Deputy Editor
Cerberus Closes $200M Credit Facility for U.S. Data Center Acquisitions
Prime Data Centers has sealed a $200 million credit facility to finance the acquisition of data center assets in top-tiered U.S. markets, Commercial Observer can first report. Cerberus Capital Management supplied the funding for the credit facility, which will target centers in Tier 1 and Tier 2 U.S. markets. Prime’s investors for its planned data center purchases include Ares Management, Siemens and Macquarie Group. Newmark arranged the transaction with a debt and structured finance team led by Jordan Roeschlaub, Jonathan Firestone and Ben Kroll. The debt and structured finance team collaborated on the deal with Brent Mayo, who heads up Newmark’s data center and digital infrastructure capital markets team.
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A Higher Power: Who Bankrolls America’s Data Center Boom, and Why
Apple co-founder Steve Jobs once called the personal computer “the equivalent of a bicycle for our minds.” But, as cloud computing, artificial intelligence and smartphones change America by the nanosecond, one must wonder how the late inventor of the iPhone would characterize data centers — the enormous industrial facilities that power our computers, secure our data, and are responsible for the functioning of virtually all internet technology. “The No. 1 word that comes to mind is scale,” said Kristina Metzger, a CBRE vice chairman specializing in data center capital markets. “I’ve been exclusively focused on data centers for the last 15 years, and, from where I started to where I am today, it’s a completely different industry.” It’s one, too, that needs — and draws — a lot more capital than before.
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Author, Strategist, Visionary & Advisor- Mission Critical Infrastructure, Expert Witness
2moLike anything else, there WILL be some real projects undertaken in this area, but, it is NOT going to have that much growth to overcome all the other issues in Commercial Real Estate. Lowered total values of building portfolios are happening already as Higher Vacancy rates and lower market values for many large office buildings appear across the country in most major cities.