i/o Data Centers Raises $200M War Chest

Phoenix based datacenter operator i/o Data Centers went to the credit markets and came back with $200M, made up of two financings.  First there is a $130M long term credit facility via Wells Fargo, supplemented by a $70M secured facility from Caterpillar Financial Services.  I wonder what the significance is that the latter is the financial division of the familiar construction equipment giant.  After all, there is probably some construction in the works since i/o Data Centers surely didn’t raise the money to have it sit around.  

i/o Data Centers operates two facilities in Phoenix, the newer of which is that 500K+ square foot monster they opened last summer.  This summer they entered the modular datacenter market with their i/o Anywhere offering, which allows them to deploy both on-site and at customer locations.  And the furthering of that modular offering to enterprises is where this money is likely aimed, according to Data Center Knowledge. But other than 35MW of power in the next twelve months, just what the details of i/o’s plans are remain unspoken – though probably not for long.  I wonder if the next announcement will take them beyond Phoenix in a big way?

This is one in a long line of independently operated colocation providers who are making big plans.  Is Equinix’s recent earnings warning an indication that there is undue optimism?  It doesn’t seem that way to me, I think Equinix’s revenue shortfall is company specific, much as their repeated revenue surpluses were over many years.  It happens.

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Categories: Datacenter · Financials