Serverfarm Expands North American Data Center Development Fund to $3.89 Billion

US data center developer Serverfarm has expanded its revolving credit facility to $3.89 billion in total commitments after closing an additional $895 million, a move that underscores the intensifying capital race among operators seeking to keep pace with surging demand for digital infrastructure across North America.

The additional funding was secured last month and will be directed toward the company's data center projects across the United States, including its Houston campus in Texas, its Clarksville campus in Arkansas, and its Atlanta campus in Georgia. The facility is backed by a syndicate of 22 banks and one institutional lender, reflecting broad lender confidence in the data center sector despite broader macroeconomic uncertainty.

"This $3.89 billion credit facility strengthens the capital foundation behind our development pipeline across North America at a time when speed, reliability, and execution matter most to our customers," said Avner Papouchado, CEO of Serverfarm. "Having readily available capital enhances our ability to deliver the infrastructure our customers need while continuing to scale responsibly across our key markets."

Serverfarm was founded in 2009 by real estate development firm Red Sea Group and was acquired by Manulife in 2023. The company currently operates 11 data center campuses across the United States, including sites in Chicago, Washington, Northern Virginia, Los Angeles, and Toronto, in addition to its Houston, Clarksville, and Atlanta locations. It also operates three additional sites in Amsterdam, London, and Tel Aviv.

The expanded credit facility highlights the growing role of debt financing in funding data center construction as operators race to bring capacity online. With AI workloads and cloud adoption driving unprecedented demand for compute infrastructure, access to large-scale, flexible capital has become a critical competitive differentiator. Serverfarm's ability to secure nearly $4 billion in commitments from a broad lending syndicate signals that financial institutions remain eager to deploy capital into the data center space, even as interest rates and construction costs remain elevated.