Data Center

Where surging demand meets the future of energy

The data center sector is experiencing rapid growth fueled by increasing demand for cloud services, artificial intelligence, and edge computing.

For data center developers, the B&I program provides up to $25M of nondilutive data center loans, even for startups. Renewable energy integration unlocks an additional $25M per applicant. The guarantees enable the negotiation of long-term multi-year stakeholder commitments and the stabilization of cash flows to the satisfaction of institutional-grade investors.

Highlights

  • Typically 100% of new project costs, including land, hand & soft costs, and working capital are eligible for USDA loan guarantees

  • One loan to cover construction through to permanent financing, with up to 24 month interest only

  • No restrictive covenants, no call provisions, no balloon payments, long-term amortizations

  • Acquisitions of existing facilities are eligible

  • Eligible for B&I ($25M per applicant) and REAP ($25M per applicant, for renewable energy systems)

USDA loan guarantee use cases for the data center industry

Facility Development and Expansion

  • Land Purchase: Acquiring land in eligible rural areas for data center construction.

  • Building Construction or Modernization: Developing new facilities or upgrading existing structures to meet industry standards, including energy-efficient and sustainable designs.

  • Site Preparation: Funding for necessary groundwork, including grading, utilities, and access roads.

Equipment Acquisition

  • IT Infrastructure: Purchasing servers, storage systems, networking equipment, and other critical hardware for data center operations.

  • Cooling and Power Systems: Financing for advanced cooling technologies, backup power systems, and renewable energy integrations.

  • Automation and Security: Investment in AI-driven management systems, cybersecurity tools, and physical security infrastructure.

Renewable Energy Integration

  • Supporting renewable energy projects such as solar panels, wind turbines, or bioenergy systems to power data centers sustainably.

  • Financing battery storage solutions to enhance energy efficiency and reliability.

Operational Enhancements

  • Technology Upgrades: Funding for software and systems upgrades to optimize data center performance.

  • Workforce Development: Financing employee training and certification programs to ensure operational excellence.

Debt Refinancing and Working Capital

  • Refinancing existing debt to improve cash flow and operational flexibility.

  • Providing working capital to support day-to-day operations, including payroll, utilities, and maintenance.

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