DC BLOX, a data center colocation provider focused on the Southeastern United States, has secured additional funding as it aims to expand its capabilities and market presence. This financial boost will allow DC BLOX to deploy over $1 billion in capital for future projects, strengthening its position as a hyperscale-ready data center platform. In addition to the equity funding, DC BLOX has secured a $265 million green Senior Secured Credit Facilities loan (SSCF).

The data center colocation company raised incremental equity capital through investments led by Post Road Group and Bain Capital Credit, with participation from both existing and new investors.

The loan, facilitated by Joint Lead Arrangers First Citizens Bank, ING Capital, and Nomura Securities International, is intended to support the development of multiple preleased hyperscale-driven edge sites. It will also fund investments in energy infrastructure, specifically 216 MW of utility power, for a recently contracted project.

DC BLOX’s CEO, Jeff Uphues, emphasized that the new funding demonstrates investor confidence in the company’s capacity to meet the increasing digital infrastructure demands of its clients. “From our edge market data centers, Myrtle Beach cable landing station, regional fiber network, and multiple 150MW+ hyperscale campuses, DC BLOX is building the digital infrastructure needed to drive future economic growth across the Southeast,” said Mr. Uphues. He pointed out that the investment would enable the company to address growing customer requirements more effectively.

The company’s strategic expansion is focused on establishing itself as a leader in the hyperscale data center market, catering to the digital infrastructure needs of large-scale enterprises and technology companies. With the growing demand for hyperscale data center facilities, which provide significant computing power and storage capacity, DC BLOX is positioning itself to offer scalable and interconnected data center services across key Southeastern markets. The newly raised capital and green loan will be used to bolster development efforts, including building out infrastructure for large-scale projects and pursuing powered-land banking opportunities.

Melih Ileri, Senior Vice President of Capital Markets and Strategy at DC BLOX, noted that the combined effect of the debt infusion and equity investment places the company in a strong position to achieve its ambitious development goals. The company expressed appreciation for the support from its financing partners, highlighting the contributions of Nomura in providing a creative and rapid financing solution.

Post Road Group, a major player in the recent capital raise, expressed confidence in DC BLOX’s growth trajectory. Michael Bogdan, Managing Partner at Post Road Group, praised DC BLOX’s leadership in the Southeastern data center landscape, citing its deep regional expertise and vertically integrated infrastructure development capabilities.

Green Financing, Sustainability Goals

In a significant move, Bain Capital Credit and Post Road Group will convert their existing debt positions to equity in DC BLOX, a decision that underscores their commitment to the company’s long-term growth. According to Brian Hirschfeld, Partner at Bain Capital, this conversion reflects the investors’ confidence in DC BLOX’s strategy to meet the complex digital infrastructure needs of hyperscale and enterprise customers.

The financing arrangement would also align with sustainability goals, as indicated by ING’s involvement in structuring the loan as a green financing facility. Cindy Jia, ING’s Head of Sustainable Finance for the Americas, stated that the green loan reflects a commitment to energy-efficient data centers and reducing the environmental impact of digital infrastructure. This investment marks a step toward supporting a low-carbon future through sustainable financing practices.

Nomura Securities International played a key role in structuring the financing, with Vinod Mukani, Global Head of Infrastructure & Power at Nomura, highlighting the partnership’s aim to scale up DC BLOX’s data center portfolio. The financing facility not only improves the company’s liquidity but also positions it for further growth in the digital infrastructure sector.

The transaction was facilitated with Guggenheim Securities serving as the Sole Placement Agent for DC BLOX, and First Citizens Bank taking on the role of Administrative Agent, while ING acted as the Green Loan Structuring Agent.

DC BLOX is focused on providing integrated digital infrastructure solutions, including data center and fiber network services, to hyperscalers, enterprises, communications providers, and technology companies. Its data centers are located in key Southeastern U.S. markets such as Atlanta, Birmingham, Huntsville, Chattanooga, Greenville, and Myrtle Beach, with several additional projects currently under development.

The new capital and green loan facility would signal DC BLOX’s determination to scale its operations and expand its market reach, while also addressing sustainability objectives in the rapidly evolving digital infrastructure landscape.