Global digital infrastructure business STACK Infrastructure is looking to borrow AUD 1.3bn (USD 844.4m) of debt, said two sources.

Denver, Colorado-based STACK has mandated Barrenjoey Capital as advisor and five underwriters for the deal, they said.

The underwriters are Deutsche Bank, MUFG, OCBC and Societe Generale, they said.

STACK plans to expand existing debt facilities and raise new facilities, said one of the sources.

STACK is a partnership between US infrastructure investor IPI Partners and US data centre business T5 Data Centres. STACK announced its entry into the Australian market in 2022 via a partnership with Australian commercial builder Hickory.

STACK owns a 28 MW data centre in Canberra and a 180 MW data centre in Melbourne, which recently received an AUD 240m investment in high-density power facilities, the company’s website states.

It raised USD 3.3bn in green financing for global data centre development in April 2024 and USD 1.3bn in June 2024 to continue developing its global portfolio.

STACK was reported by Infralogic in October last year to be looking to raise debt to fund development of a German data centre.

The capital-intensive data centre business often needs new money to extend current sites and develop new ones.

Infratil-backed CDC Data Centres went to market for NZD 1.15bn in equity last year to fund the business’ rapid growth, just after CDC priced a USD 569.6m bond on the US private placement (USPP) market.

Infratil, a Morrison-managed Trans-Tasman listed investor, said at the time it planned to contribute AUD 600m in equity over the next two years to fund growth at the Australia and New Zealand focused data centre operator.

STACK Infrastructure operates in 23 countries with more than 40 GW of projects built or under development and 7 GW planned for development, according to its website.

Stack Infrastructure, Deutsche, MUFG, OCBC, Societe Generale and Barrenjoey either declined or did not respond to requests for comment.