Vantage, a sponsor of securitizations, including those backed by data center real property interests, just closed a $2 billion financing facility to support data center development throughout its North American markets, the company announced.
The five-year revolving credit platform includes an initial collateral pool of three developments, leaving the option to contribute more assets over time. The platform also has extension options, which could put the term past five years.
"The newly established development facility … reflects the scale of our platform, the quality of our development pipeline and the strength of our institutional relationships," according to a statement from Scott Beasley, Vanta's global chief financial officer.
The financing builds on Vantage's broader capital strategy, with the company closing on more than $40 billion of capital through diverse funding sources. Those sources included a $337 million in securitized notes backed by real property interests through the
Vantage provides digital infrastructure globally, including data centers in North America and Europe, according to the company.
The timing of Vantage's new facility coincides with a sector deep dive from Moody's Ratings, which finds that the country's power grid will need about $100 billion in transmission infrastructure buildouts to keep up with rising data center demands.
"Rising data center demand is likely to become one of the largest drivers of U.S. electricity load growth over the remainder of the decade," according to Moody's analysts.
The International Energy Agency (IEA) estimates that by 2030 annual U.S. data center electricity consumption will reach 426 terawatt-hours. Meanwhile, new capacity additions will continue to surge in that same timeframe, led by combined-cycle gas turbine systems. Developers are also expected to tap the capacity of solar and battery storage energy sources, according to Moody's.
The Trump administration has advanced programs to give incentives to small modular reactors, to provide nuclear energy to the mix, Moody's said.
The administration also supported a $17.5 billion loan program to help develop AP1000 reactor technology. Although nuclear energy is seen as a viable option with no carbon emissions, Moody's said, new nuclear development is not expected to come online before 2035.
