EdgeCore closes $235 million data center bond deal

Article originally posted on CoStar on July 28, 2025

EdgeCore Digital Infrastructure has completed a $235 million asset-backed bond offering to refinance construction debt and bankroll future data center development in Mesa, Arizona.

The securitization is the first for EdgeCore. The Denver-based developer backed the deal with rental revenue from its fully operational PH01 data center, which delivers 26 megawatts of power consumption to a single tenant. A small city of 100,000 people typically needs about 100-200 megawatts during peak demand on hot summer days when air conditioning use is high.

The facility sits on EdgeCore’s flagship campus in greater Phoenix and carries an appraised value of $314 million, according to presale analysis of the deal by S&P Global. The bond-rating firm rated the securitization with investors oversubscribing the offering.

EdgeCore structured the deal using green bonds that target sustainable data center development.

“The company plans additional securitizations to fund high-density campus development across its portfolio,” EdgeCore CEO Lee Kestler said in a statement.

The unnamed tenant occupies the Arizona property on a full-service gross lease with 13.4 years remaining on its term. Four lease phases mature between 2037 and 2039.

Phoenix ranks as America’s fourth-largest data center market with over 2 million square feet of operational space and 700 megawatts of leased capacity, according to CBRE’s latest North American data center report. The market added 242.8 megawatts in 2024 while vacancy dropped to 1.9%.

Arizona’s low power costs of 6 to 7 cents per kilowatt hour and tax incentives attract data center providers, according to S&P. However, utility rate increases and extended connection timelines threaten future expansion.

EdgeCore operates facilities in Mesa with projects under construction in Northern Virginia; Santa Clara, California; and Reno, Nevada. Partners Group acquired the company in 2022, committing $3.1 billion for acquisitions and development.

EdgeCore recently acquired 697 acres in Louisa County, Virginia, for $42 million on which to develop a 1.1-gigawatt campus. In May, the firm acquired 44 acres in Mesa for $44 million to expand capacity beyond 450 megawatts.