Flexential Secures $800M Credit Facility
The financing will help development in four key markets.
Flexential has established an $800 million credit facility to accelerate the development of new data center capacity in four key markets across its national platform.
The financing will support more than 130 megawatts of new capacity. Projects currently under construction include a 36-megawatt facility in Atlanta-Douglasville, Ga., a 36-megawatt facility in Portland-Hillsboro, Ore., and a 22.5-megawatt facility in Denver-Parker, Colo.
Also planned are another 36-megawatt facility in Portland-Hillsboro and a 4.5-megawatt expansion adjacent to Flexential’s existing operations in Atlanta-Norcross, Ga.
READ ALSO: Has Data Center Development Hit a Wall?
Flexential said that because of strong demand, the $800 million facility was oversubscribed and upsized 60 percent from its initial target of $500 million. The facility is supported by a syndicate of 11 digital infrastructure banks and complements ongoing equity investment from Flexential’s sponsors, GI Partners and MSIP.
TD Securities was the administrative agent and joint coordinating lead arranger and joint bookrunner. RBC Capital Markets and J.P. Morgan were joint coordinating lead arrangers and joint bookrunners. Goldman Sachs, ING, SMBC, Bank of America and KeyBanc were joint lead arrangers. Flagstar, Citibank and Investec were co-documentation agents. Simpson Thacher was Flexential’s legal advisor for the transaction.
Pushbacks and Portland progress
Public skepticism toward data centers continues to be a hurdle for the industry, as more than 30 states have enacted or are considering data center moratoriums. Given the speed to market that’s often needed for a data center project, a moratorium can essentially function as a ban, according to experts who spoke to Commercial Property Executive.
Still, developers are still making deals and starting work on new projects. In late May, Flexential acquired two data centers in Hillsboro, Ore., which was at the time the company’s largest acquisition. The seller was T5 Data Centers.
That move followed Flexential’s September 2025 purchase of a parcel in Hillsboro for the development of its sixth data center. Designated Hillsboro 6, the project will consist of a 350,000-square-foot, two-story facility with 27 megawatts of power.
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