DataBank secures $250M to expand AI data center operations

DataBank, a data centre infrastructure company, has secured a USD 250 million equity investment from TJC, along with a USD 600 million secondary share offering, expanding its total recent fundraising to nearly USD 5 billion.

Investment details: The latest funding round builds upon DataBank’s USD 2 billion primary equity round from October 2024, driven by strong investor interest in artificial intelligence-focused data centre infrastructure.

• The secondary share purchase allowed existing investors to sell their shares, reflecting growing demand for data centre sector investments
• The combined funding will support new data centre campus development and facilitate equity purchases from existing investors
• BofA Securities and Citizens Capital Markets Inc. served as financial advisors, while Proskauer Rose LLP and Kirkland and Ellis LLP provided legal counsel

Company infrastructure and capabilities: DataBank maintains an extensive network of data centres across multiple markets, positioning itself as a major player in the colocation and interconnection space.

• The company operates 72 data centres throughout the United States and one facility in the United Kingdom
• Their facilities encompass 4.50 million square feet with 877MW of critical load capacity
• The infrastructure includes over 65 HPC-ready data centres across 27 markets and 20 interconnection hubs

Strategic perspectives: Leadership from both DataBank and TJC emphasize the strategic importance of this investment in the context of growing artificial intelligence demands.

• DataBank CEO Raul K. Martynek highlighted the investment as a validation of the company’s strategy and execution capabilities
• TJC partner Eion Hu emphasized data centres’ role as fundamental infrastructure for digital transformation and AI advancement
• The investment signals confidence in DataBank’s ability to meet increasing demand for reliable, scalable, and energy-efficient infrastructure

Market implications: The substantial investment in DataBank reflects broader trends in data centre infrastructure development and artificial intelligence adoption.

• The deal demonstrates continued investor confidence in data centre infrastructure despite market uncertainties
• The focus on HPC-ready facilities suggests preparation for increasing artificial intelligence workloads
• The inclusion of both primary and secondary offerings indicates a maturing market with opportunities for both new investment and investor exits