EdgeConneX Seeks Up to $2.5 Billion in Bank Guarantees for Data Center Power Infrastructure Construction

According to Bloomberg, EdgeConneX, a data center operator backed by EQT, is seeking a credit line of up to $2.5 billion from banks to cover power-related costs for its data center projects. People familiar with the matter said the company is in talks with lenders including Natixis and BBVA, and the financing could be finalized as early as this month. The arrangement aims to help EdgeConneX lock in power supply for its data center projects. Data center developers typically need to pay large deposits to utility firms to build grid connection infrastructure such as transmission lines and substations, and letters of credit can reduce the cash tied up by developers while waiting for power access. Since EQT Infrastructure invested in EdgeConneX in 2020, the company’s completed data center capacity has more than tripled. As power supply emerges as a major bottleneck for data center expansion, an increasing number of developers are adopting similar financing tools. Switch recently secured $3.5 billion in bank commitments, while Blackstone-backed QTS is also in talks for at least $2 billion in related financing. Separately, EdgeConneX is also discussing up to $4 billion in debt financing for a data center project in Texas.