TD Securities Leads Funding Round with New Lenders
Serverfarm, a prominent player in the data center industry, has successfully secured a significant increase to its North American credit facility, which now totals $1.637 billion. This expansion was spearheaded by TD Securities, a leading Canadian investment bank, and includes participation from seven new lenders, bringing the total number of lenders involved to 19.
Strategic Move to Support Growth Amid Rapid Demand
The capital raise is timely, coinciding with Serverfarm’s recent announcement of a major 500 MW expansion at its Houston facility. This move will enable the company to meet the rapidly accelerating demand for cloud services and AI-driven applications. Avner Papouchado, CEO of Serverfarm, expressed his satisfaction with the new funding, stating, “We’re delighted to have access to additional capital to support Serverfarm’s strong track record of providing near-term capacity to key customers.”
The demand for data center capacity, driven by hyperscale customers and the increasing need for cloud and AI infrastructure, has fueled growth across Serverfarm’s portfolio. This new funding will ensure that Serverfarm can continue to scale its operations and meet the needs of its expanding customer base.
A Testament to Serverfarm’s Strong Market Position
Recep Kendircioglu, the global head of infrastructure at Manulife Investment Management, also weighed in on the funding round, highlighting the strong interest from lenders. He noted, “We are grateful for our financing partners and look forward to continuing to build on the strategic long-term relationships we have with them. The strong interest that we have received from the lender community is a testament to the strength of the Serverfarm platform and the company’s significant growth potential.”
Serverfarm’s Expansion Plans and Global Presence
Founded in 2009 by the real estate development firm Red Sea Group, Serverfarm was acquired by Manulife Investment Management in 2023. The company’s growth strategy includes expanding its data center footprint across North America, Europe, and Israel. Serverfarm operates eight data centers, including its latest acquisition in Houston, covering a total of 1.5 million square feet of data center space and offering 125 MW of IT capacity.
In addition to its North American and European operations, Serverfarm recently expanded into the Greek market. In December 2024, it signed a Heads of Term agreement to establish a joint venture, Gemini, with the Independent Power Transmission Operator (IPTO) of Greece. This collaboration aims to construct and operate hyperscale-ready data center facilities on IPTO-owned sites, starting with locations in Athens.
Key Investments and Strategic Partnerships
The addition of the $1.637 billion credit facility will help Serverfarm maintain its aggressive expansion strategy, particularly in high-demand markets such as Houston, Athens, and beyond. The joint venture with IPTO demonstrates Serverfarm’s commitment to broadening its international reach and building long-term partnerships with key industry players.
The company’s ability to attract investment from a wide range of lenders underscores its strong reputation in the industry and its potential for sustained growth. Serverfarm’s focus on providing scalable, efficient, and reliable data center solutions positions it well for future success.
Serverfarm’s Houston Facility: A Significant Expansion
One of the standout projects for Serverfarm is its ongoing expansion in Houston. With the announcement of the 500 MW capacity boost, the company is positioning itself to meet the growing demand for cloud and AI infrastructure in the region. Houston, a key hub for technology and energy industries, offers a prime location for data center development, with access to reliable power sources and a strong business environment.
Serverfarm’s HOU1 facility, located at 28401 Betka Road in Hockley, Texas, is at the heart of this expansion. The facility will continue to serve as a crucial piece of Serverfarm’s North American operations, providing high-performance compute, storage, and networking solutions to its customers.
Global Data Center Expansion: A Look at Serverfarm’s Strategy
Serverfarm’s growth strategy extends beyond North America, with a focus on Europe and the Middle East. The company’s recent venture into Greece through the Gemini partnership is a clear indication of its intent to expand its footprint in key international markets. As cloud computing, AI, and data-driven services continue to dominate the global tech landscape, Serverfarm is well-positioned to capitalize on the increasing need for data center space.
The company’s global expansion efforts align with the broader trend of increased investment in data centers as businesses and governments across the world seek to address the growing demand for digital infrastructure.
Author Bio
Jane Doe is a seasoned tech journalist with over 10 years of experience covering the data center industry, cloud computing, and digital infrastructure. She holds a Master’s degree in Information Technology and has contributed to various tech publications, offering in-depth insights into industry trends and innovations.
Frequently Asked Questions
What is Serverfarm’s new credit facility worth?
Serverfarm has increased its North American credit facility to $1.637 billion, with funding provided by TD Securities and 18 other lenders.
How does the new funding benefit Serverfarm?
The additional capital will support Serverfarm’s expansion plans, including the development of new data center facilities in high-demand markets and the continued growth of its existing operations.
Where is Serverfarm expanding its data center presence?
Serverfarm is expanding its data center footprint across North America, Europe, and Israel, with a recent expansion in Houston and a new joint venture in Greece.
What is the Gemini partnership with IPTO?
The Gemini joint venture between Serverfarm and the Independent Power Transmission Operator (IPTO) of Greece aims to develop hyperscale-ready data center facilities in Athens and other parts of Greece.
How much data center space does Serverfarm operate?
Serverfarm operates eight data centers globally, totaling 1.5 million square feet of space and 125 MW of IT capacity.
