Rowan Digital Infrastructure Secures $1.5 Billion in Financing

Funding Overview

Rowan Digital Infrastructure, well-known for its sustainable hyperscale data centers across the United States, has secured significant corporate financing amounting to over $1.5 billion. This round of funding was made public on November 12, with a primary focus on enhancing the company's project capacity.

Details of the Financing

The financing details encompass a $600 million increase to Rowan's term loan led by Apterra Infrastructure Capital. This expands the loan amount to $900 million, which initially began as a $300 million loan and letter of credit facility for early-stage projects. Additionally, a $590 million revolving credit facility has been established, along with a $355 million letter of credit facility, both led by Citibank, N.A.

These funding mechanisms allow Rowan to efficiently manage its project pipeline, which spans an impressive 5.5 GW across multiple U.S. markets. The flexibility provided by these facilities enables Rowan to streamline early project phases, including land acquisition, power sourcing, and ordering long-lead equipment.

Confidence from Lenders

The lenders involved in the revolving credit and letter of credit facilities include prominent names such as Citibank, Mizuho Bank, MUFG Bank, Goldman Sachs Bank USA, Société Générale, Sumitomo Mitsui Banking Corp., and Huntington National Bank. This diversified group highlights the strong confidence leaders in the financial sector have in Rowan's capabilities and future growth.

Notably, SMBC, Mizuho, and MUFG played key roles in Rowan's earlier $2.9 billion Temple 1 financing in early 2023. Collectively, Rowan has amassed over $8 billion in funding partnerships from more than 40 lenders within the past 18 months, which will accelerate project development and capacity delivery for hyperscale clients.

CEO Insights

Charley Daitch, CEO of Rowan Digital Infrastructure, shared insights into the company’s vision, stating, “Rowan has been built on the thesis that speed to power and deep community engagement will define the next era of digital infrastructure.” He emphasized the company's extensive portfolio, already under contract with leading technology partners, and the vital role that the latest corporate financing plays in supporting their strategic growth.

Facilities and Future Plans

The new financing also features an accordion option, which allows Rowan to enhance the total borrowing capacity of the revolving credit facility to up to $2 billion, alongside raising the letter of credit facility to $1 billion, contingent on certain conditions. This adaptability is essential as Rowan aims to scale its operations further.

Citibank, N.A. acted as the lead arranger and administrative agent for the revolving credit facility and letter of credit facility. Apterra Infrastructure Capital took the lead in arranging the term loan increase. In statements celebrating the financing, Ralph Cho and Michael Pantelogianis, Co-CEOs of Apterra, expressed excitement about their partnership with Rowan, emphasizing the escalating demand for digital infrastructure financing.

Rowan's Commitment to Sustainability

Rowan Digital Infrastructure has demonstrated a commitment to sustainable development, having recently secured nearly $3 billion in financing for its 300 MW Temple campus, marking it as the largest financing in the company's history. This financing was accomplished under Rowan’s Green Finance Framework, which has seen a total of $4.4 billion secured across three projects.

As a relatively new player in the market, founded in November 2020, Rowan has quickly established a reputation for providing tailored solutions to hyperscale clients, facilitated by robust capital partnerships including those with Quinbrook and Blackstone.

Looking ahead, Rowan plans to architect numerous new campus developments, with each one ranging between 300 MW and over 1 GW, to address the increasing demand from hyperscale operators in a rapidly evolving landscape.