Canada's Data Centre Titan Expands Financing Power

In a groundbreaking move, Montreal's eStruxture Data Centers has nearly doubled its borrowing capacity and earned an investment-grade credit rating for its inaugural public debt offerings. This makes it the largest homegrown data-centre developer in Canada.

$750 Million for Innovative Securitization

eStruxture has successfully raised $750 million—the first-ever data-centre securitization in Canada to be rated by agencies and supported solely by Canadian assets. This package includes two sets of $150 million in five-year notes and a significant $450 million third set, all rated at a solid BBB with a stable outlook by DBRS.

Transforming Financial Landscape with New Facilities

Evolving beyond traditional funding, eStruxture is replacing a $750 million bank facility with a streamlined $600 million deal backed solely by National Bank of Canada and Bank of Nova Scotia. This expansion brings its total borrowing capacity to a staggering $1.35 billion, setting the stage for significant infrastructure growth.

Funding the Future: Data Centres on the Horizon

The company plans to leverage its bank financing to construct new data centres—each costing upwards of $500 million—before issuing bonds to recoup costs post-launch. This strategic approach is expected to save over 100 basis points in annual borrowing costs.

Green Finance Framework Appeals to Investors

In a bid to attract environmentally conscious investors, eStruxture’s new notes will be issued under its innovative 'green finance framework.' The notes are priced at a competitive 290 basis points above five-year Government of Canada bonds, marking the narrowest spread for any Canadian data-centre issuance to date.

A Bright Future Ahead for eStruxture

Taylor Hammond, eStruxture’s head of corporate development, believes this financing will significantly lower the company's capital costs while also establishing a perpetual funding source for future expansion—essentially a stamp of approval for stakeholders.

A Boon for Canada's Data Infrastructure

As the generative AI boom heightens demand for energy-intensive data centres, the Canadian government is increasingly prioritizing domestic data infrastructure as crucial for national security. To support this initiative, the government recently unveiled a $2 billion program aimed at bolstering local AI technological capabilities.

Pioneering Growth in Alberta and Beyond

With ambitious plans for expansion, eStruxture is ahead of the curve, including a $750 million facility in Calgary. The company has transformed various properties, including a former Montreal Gazette printing plant, into state-of-the-art data centres. It serves nearly 1,000 clients, including tech giants and major telecom companies.

Backing from Strong Partners

Originally backed by the Caisse de dépôt et placement du Québec, eStruxture underwent a major recapitalization in an $1.8 billion deal last year involving a consortium led by Fengate Asset Management.

Stable Future with Resilient Clientele

eStruxture's bonds are supported by reliable contract payments from 390 customers across six data centres. According to DBRS, the company’s investment-grade rating reflects stable projected cash flows driven by a diverse and loyal client base, underscoring the essential role data centres play in today’s digital economy.