Kao Data, a leading developer and operator of data centers specialized for AI and advanced computing, has completed a £206 million debt raise with Deutsche Bank. The accompanying accordion facility, extendable to £356 million, signifies a significant milestone for Kao Data’s strategic growth plans and infrastructure development.
The debt financing, led by Deutsche Bank, aims to expedite Kao Data’s contracted developments with clients in the cloud, AI, and financial services sectors. Additionally, it will support the construction of the KLON-06 data center in Slough, showcasing the company’s commitment to meeting the growing demand for GPU-powered computing.
Matthew Harris, CFO of Kao Data, expressed his gratitude, stating, “The success of our new debt raise is a testament to the growth of our business, our reputation for industry-leading operations and technical delivery, and both the scale and demand for world-class infrastructure, engineered for AI.”
Deutsche Bank recognized for its expertise in sustainable digital infrastructure assets, will play a crucial role in driving Kao Data’s expansion into next-tier markets across the UK and continental Europe. The new capital structure established in late 2023 with shareholders Infratil Ltd., Legal & General Capital, and Goldacre Noé Group will further provide incremental equity investment to accelerate Kao Data’s strategic growth plans.
The debt facility with Deutsche Bank allows Kao Data to consolidate its debt with a single, large financial services organization, refinancing existing lenders integral to the development of its secure, highly scalable, and sustainable data center platform over the past decade. Downing LLP, a key partner since Kao Data’s early development, will be among the lenders benefiting from a proportion of the new funding.
Tom Phillips, Head of Institutional Business Development at Downing, commented, “During the term of our investment, Kao Data has proved itself as an excellent example of what we look for in the businesses we like to back: a high-quality management team with a compelling business case.”
The successful twelve months for Kao Data include securing key customers from the AI, hyperscale cloud, research, and financial services sectors, along with a £350 million investment into a state-of-the-art Greater Manchester data center in May 2023. The completion of the KLON-02 facility in Harlow in November further underscores Kao Data’s commitment to providing world-class infrastructure engineered for AI.
Kao Data’s advanced data center portfolio, totaling more than 160 MW of IT load, reflects its dedication to the highest energy efficiency, sustainability, and environmental, social, and corporate governance (ESG) credentials.
For more information about Kao Data’s AI-engineered data center platform, visit their official website.