EdgeConneX is seeking up to $2.5 billion in bank guarantees for data center power construction.

August 14th. According to Bloomberg, EQT-backed data center operator EdgeConneX is seeking a credit line of up to $2.5 billion from banks to secure power-related costs for its data center projects. Sources familiar with the matter said the company is in talks with banks such as Natixis and BBVA, and the financing could be finalized as early as this month.

This arrangement is designed to help EdgeConneX secure power supply for its data center projects. Data center developers typically need to provide a large deposit to utility companies for the construction of transmission lines, substations, and other grid infrastructure. A letter of credit can reduce the cash developers have tied up while waiting for power connections.

Since EQT Infrastructure's investment in 2020, EdgeConneX has more than doubled its completed data center capacity. With power supply becoming a critical bottleneck for data center expansion, more developers are turning to similar financing tools. Switch recently secured a $3.5 billion bank commitment, and Blackstone-backed QTS is also in talks for at least a $2 billion financing.

Furthermore, EdgeConneX is also separately discussing up to a $4 billion debt financing for a data center project in Texas.