Aligned completed a $1 billion senior secured credit facility that is the first U.S. data center sustainability-linked financing. The facility is one of the largest private debt raises in data center history, consisting of a $650 million term loan, a $100 million delayed draw term loan and a $250 million revolving credit facility. Aligned engaged TD Securities as the administrative and collateral agent; Goldman Sachs Lending Partners LLC as the syndication agent; and ING Capital LLC as the sustainability structuring agent. TD Securities, Goldman Sachs Bank USA, Citizens Bank, N.A., Deutsche Bank AG, New York Branch, and Nomura Securities International, Inc. served as joint bookrunners and joint lead arrangers for the facility.
“Aligned’s latest sustainability-linked financing accelerates our goal to set a best-in-class example for the data center industry with respect to environmentally and socially sustainable growth,” states Anubhav Raj, CFO, Aligned. “Sustainable practices and principles permeate every facet of Aligned’s organization; aligning these initiatives with our financing further demonstrates an industry-leading commitment to environmental stewardship.”
“As experts in sustainable finance, ING identified Aligned's potential early on as a leader committed to solving sustainability challenges associated with data center infrastructure,” adds Pim Rothweiler, Regional Head for Technology, Media & Telecom, ING Americas. “Following the company’s rapid growth over the last few years, ING was able to bring its deep expertise in the sector and sustainable finance to be named the Sustainability Coordinator for this landmark deal, a first of its kind. We look forward to working with Aligned in the future as it continues to meet its sustainability targets.”
The first-of-its-kind facility in the U.S. data center sector provides Aligned with additional capital to accelerate corporate, customer and community-related sustainability initiatives as well as short and long-term growth objectives. Aligned’s sustainability-linked financing is tied to the Company’s core environmental, social and governance (ESG) objectives, and Key Performance Indicators (KPIs), including:
- Renewable Energy: A commitment to match 100% of Aligned’s annual energy consumption to zero-carbon renewable energy by 2024.
- Sustainability Reporting: Transparency and continuous improvement across sustainability best practices. This target aligns the Company’s ESG reporting efforts with a leading global standard, maximizing consistency in ESG disclosure for Aligned stakeholders.
- Workplace Safety: A commitment to having / reporting on an industry-leading Total Recordable Incident Rate (TRIR).
Earlier this year, Aligned elevated its commitment to environmental stewardship and sustainability by matching 100% of the IT loads across its data center portfolio with certified renewable energy. The company was also named a 2020 Green Lease Leader by the Department of Energy’s Better Buildings Alliance and the Institute for Market Transformation. Aligned’s Delta3 cooling technology utilizes up to 80% less energy and 85% less water, significantly reducing environmental impact and allowing customers to Expand on Demand without stranding capacity, which also improves sustainability.
“I couldn’t be prouder of our team’s achievements and operational strength, culminating in an ability to continue championing a slew of firsts for the data center industry,” says Andrew Schaap, CEO, Aligned. “That sentiment is recognized and echoed in this latest and unprecedented round of financing, which provides Aligned the ability to keep expanding our data center portfolio. This includes land acquisition in key U.S. and international regions to address the heightened data center demand of our marquee clients, as well as expediting the expansion of existing data center campuses.”