Stack Infrastructure Inc., a company that builds data centers for cloud operators and other organizations, has raised $250 million in debt funding.

The transaction was announced this morning. The debt financing carries a 5.9% fixed interest rate and is structured as a securitized note, which is a type of loan that can be marketed to investors. The raise comes six months after Stack Infrastructure raised another $250 million through a securitized note transaction that had similar financial terms.

“STACK’s proven growth strategy has generated incredible levels of investor demand,” said Cameron Parker, the treasurer of Stack Infrastructure’s Americas business unit. “This successful transaction underscores our position as an industry leader and our commitment to drive value and certainty to our clients.”

Stack Infrastructure was formed in early 2019 by IPI Partners, an affiliate of technology investment firm ICONIQ Capital. ICONIQ is believed to count numerous technology entrepreneurs among its clients. To launch Stack Infrastructure, IPI Partners bought several data centers from technology real-estate companies Infomart and T5.

Stack Infrastructure has raised more than $2 billion in debt funding over the past few years. It used that capital to expand its data center footprint beyond the facilities bought by IPI Partners. Today, the company says that it operates data centers in 10 metropolitan areas throughout the U.S. and more than a dozen other locations worldwide. 

Drawing up the blueprints for a new data center can take upwards of months. To speed up the process for companies, Stack Infrastructure can provide a prepackaged blueprint. Customers have the option to customize key facility sections such as the data halls, the rooms that house servers and related equipment.

Stack Infrastructure claims that it can build a new data center in under a year when certain conditions are met. To expedite construction, the company has created a supply chain designed to help data center operators more quickly source equipment. Stack Infrastructure says that its supply chain can speed up construction by several months in some cases.

Alongside custom data centers, the company builds so-called powered shells. Those are facilities that Stack Infrastructure constructs in anticipation of future demand rather than as part of a customer contract. If a company needs to quickly expand its data center capacity, it can purchase an existing powered shell instead of waiting months or more until a new facility can be built.

Stack Infrastructure often builds multiple data centers in the same location. One of its largest data center campuses is located in Northern Virginia, which is home to a sizable portion of the world’s cloud infrastructure. Stack Infrastructure says the campus will house seven facilities when construction is complete.

The company detailed this morning that it’s also planning to build a campus in Phoenix. The campus is expected to feature five facilities that will be supported by a dedicated electrical substation. Including the $250 million round it announced today, Stack Infrastructure has raised about $2.3 billion in debt financing to date.  

Image: Stack Infrastructure