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Digital Edge DC, a company backed by private equity fund Stonepeak Infrastructure Partners, is reaching out to banks for a potential loan to fund a data center project in India, according to people familiar with the matter.
Singapore-headquartered Digital Edge DC, which operates data centers in Asia, is seeking a loan of about $400 million to $500 million, said the people, who asked not to be identified as the matter is private. The financing could carry a tenor of between five to seven years, the people added.
Proceeds are to fund Digital Edge DC’s data center project at Navi Mumbai in the western state of Maharashtra, the people said. Discussions with potential financiers — which comprise of international and regional banks — are ongoing and the deal’s details could be subject to change, the people added.
Digital Edge DC didn’t respond to a request for comment.
Digital Edge DC’s planned financing is the latest example of a boom in data center financing, as companies around the region rush to meet the growing need for services linked to artificial intelligence.
Yondr Group Ltd. and Shanghai DC-Science Co. are both seeking private debt for the development of data centers in the southern Malaysia state of Johor, Bloomberg reported in September and November, respectively.
Navi Mumbai, a large data center hub in India, is Digital Edge DC’s first such project in the country. The company is expected operate a 300 megawatt campus at full capacity, according to its website. The campus, named BOM1, will be constructed in multiple phases with the first part to be completed in the first quarter of 2025.
In August 2020, New York-based Stonepeak, its investors and Digital Edge DC’s management team announced they have committed $1 billion in capital to the platform.
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