Compass Datacenters has completed its first major round of financial funding: a $45 million credit facility with an accordion feature up to $100 million from KeyCorp’s commercial finance unit, KeyBank, NA. This is the company’s first formal round of funding since the company began operations earlier this year, and it will be used to finance its aggressive growth plan over the coming months.
“This funding coupled with our successful equity raise provides Compass Datacenters with the capital we need to finance the initial phase of our growth, which will involve construction projects across the U.S. in markets where there is demand for our wholesale standalone data centers,” said Chris Crosby, founder and CEO of Compass Datacenters. “Since we entered the market in April, we’ve gotten a tremendous response from the market that validates our strategy of offering standalone data centers to geographic areas that are under-served by traditional providers. With this huge untapped market, the solutions we offer are clearly resonating with customers not only because of our geographic flexibility, but also how we enable companies to connect and grow their data centers in bite-sized chunks.”
“Compass Datacenters is pioneering a major area of growth for the data center industry by offering wholesale standalone data center products that meet the needs of companies that are in geographic areas that are not well served by traditional providers. They have assembled a strong management team comprised of executives with proven track records in data centers and real estate development. Their wholesale business model and proprietary design architecture have the company positioned to be the leader in this growth market,” said John Murphy, managing director of Real Estate Capital at KeyBank.