NTT Global Data Centers (NTT GDC), a unit of Japan’s NTT, is looking to raise at least $1bn in new funding to support data centre projects in the US, according to people familiar with the matter cited by Bloomberg.
The company is reportedly working alongside US-based Citigroup on the fundraising effort, which involves offering stakes in a development vehicle set up specifically for new US data centre schemes.
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Depending on the level of interest from investors, the size of the equity offering could be expanded, and the company may also pursue a separate credit facility, the sources told Bloomberg.
NTT GDC has started circulating marketing documents to potential long-term backers, among them pension funds and infrastructure investors, the report said.
A formal sale process is anticipated to get underway within the next few weeks.
The development company model is intended to house pre-revenue, early-stage assets, giving data centre developers access to a wider base of long-term capital providers.
In return, investors can pursue higher returns by taking on development-stage risk.
According to the report, the talks are still at a preliminary stage, meaning the timeline and scale of the fundraising remain subject to change.
NTT GDC stated last year that it had secured land across North America, Europe and Asia sufficient to support close to one gigawatt of planned data centre capacity, including new locations such as Milan.
In the US, the company has acquired land in Hillsboro and Phoenix.
The firm is currently working on 34 projects that are expected to double its existing capacity within two years, with chief executive officer Doug Adams stating in a March interview cited by Bloomberg that capacity could reach “well over five gigawatts” within five years.
