View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Technology
  2. Cloud
March 16, 2016updated 04 Sep 2016 11:35pm

Colo IO raises $505m in financing, eyes UK data centre expansion

News: Investment in Slough data centre announced as company plans expansion in 3 other regions.

By

Data centre provider IO has raised $505m to help further expand its colo footprint globally including in the UK.

The company secured $445m in debt capital from Deutsche Bank and $60 million in additional growth capital from an affiliate of Macquarie Capital.

IO said the proceeds from the Deutsche Bank loan allowed it to refinance its existing US indebtedness.

IO will use the proceeds from the Macquarie Capital transaction to further its international and domestic growth in the US.

This will include investment in its Slough site, London, and general corporate purposes.

In October 2015, IO‘s UK MD Nigel Stevens told CBR the company would be investing in more UK spaces.

The hub in Slough was brought online last year and currently stands at 10,000 sqm.

Content from our partners
Tech sector is making progress on diversity, but advances must accelerate
How to bolster finance functions and leverage tech to future-proof operational capabilities
How digital technologies can meet the challenges and opportunities ESG presents

Stevens said: "This is fantastic news for IO at a global level, and will allow for continued investment in the UK.

"IO has been operating in the UK for less than a year, but this capital raise demonstrates our strength as a global data centre provider."

The provider has at the same time acquired land and buildings underlying its IO.New Jersey and IO.Ohio data centres.

In addition, IO also announced that it purchased approximately nine acres adjacent to its Phoenix data centre campus and that it has plans to expand capacity at that campus.

The company is planning to build a three-story data centre to support its colocation and cloud services in the region.

The facility will have over 100 MVA in total capacity, doubling the amount of capacity it currently offers in the Arizona market.

IO plans to break ground on the new building in late 2016 and open in 2017, deploying one module at a time.

George Slessman, IO CEO said: "This capital raise reflects the excitement in the worldwide data centre market – the physical layer of the global Internet.

"This new capital will help fuel our growth and to keep pace with global customer demand."

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU