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Aligned Secures $1b in Sustainability Linked Debt to Build Data Centers

The developer aligned energy is a team that specializes in the production of large data center production and leasing. The company produces data centers on a wholesale basis and recently  receive $1 billion in sustainability linked debt to build new data centers. The company is investing borrowed money based off of its current performance against sustainability commitments for its data centers. 

If they are able to deliver on their commitment build be able to get an ongoing discount on the interest rate for the loan. If the sustainability commitments are not met, they’ll be on the hook for the full interest rate on the $1 billion debt. 

This is the first deal of its kind from any US data company and Aligned is planning on using their new funding to deliver existing contracts that account for about $750 million in business. The rest of the funds they are planning on turning into further expansion for their data centers. 

Several banks went in together to arrange the funds with the sustainability contract. Part of the reason why Aligned was able to secure the contract was their announcement to match 100% of the customer IT load with renewable energy credits through their company. With a commitment to matching the energy load, Aligned is able to offset the technology running with all of their clients. 

Maintaining this offset is one of the commitments that the company will have to continue over the next four years to get a discount on its interest rate. Aligned is on path to manage in this feat as they are in the top 25th percentile of companies with the lowest total recordable incident rate for workplace safety. They maintain an excellent uptime and some of the best efficiency amongst data centers worldwide. If the company is unable to manage on its commitments it will be penalized with a higher interest rate and this is dependent on their energy usage as well as staying within the top 50th percentile of total recordable incident rates in the USA.

This post was written by Justin Tidd, Director at https://beckersmcusa.com/. For nearly a half a century, Becker Mining has been at the forefront of mining electrical companies. Becker/SMC is the industry’s leader in increasingly more sophisticated electrical control systems. Most of the major innovations, design features and specialized electrical components have been developed by Becker/SMC.

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