Overview
EdgeConneX Inc., which is supported by EQT Infrastructure, is weighing a debt raise that could reach as much as $4 billion to help fund its planned data center project in Texas, according to people familiar with the discussions. The company is at an early stage of talks with financial advisers as it assesses which debt markets to access for the potential financing.
Financing options under consideration
Those involved in the discussions are examining a range of capital options. One of the pathways being explored is a private placement to large institutional investors using the 144A market. That route would involve selling debt directly to qualified institutional buyers rather than conducting a public offering.
Use of proceeds and tenants
The potential proceeds from the debt issuance would be allocated to the construction of EdgeConneX’s Cedar Creek data center located in Bastrop County, Texas. Local reporting, citing state and county records, indicates that cloud infrastructure provider CoreWeave Inc. is expected to be a tenant at the site. The expectation of tenancy, as described by the local outlet, informs the financing discussions but does not itself confirm finalized contracts.
Corporate background
EQT Infrastructure completed its acquisition of EdgeConneX in 2020. EdgeConneX operates a global footprint of more than 80 data centers spanning the Americas, Europe, the Middle East and Asia. The company’s scale and the involvement of an infrastructure investor are factors cited by those familiar with the talks as relevant to how the financing might be structured.
Where things stand
Conversations remain preliminary. Advisers are assisting EdgeConneX in evaluating market access and investor appetite for any debt placement. No final decision has been announced, and the timing, size and format of any transaction would depend on outcomes of those ongoing deliberations.
This article reports on the status of financing discussions as described by people familiar with the matter and on local reporting about prospective tenancy. Details are based on those accounts and company background information provided above.