[Funding alert] London-based Kao Data Secures £206Million in debt Funding

The announcement marks a significant step forward for Kao Data, providing debt financing to fast-track its new contracted developments with customers across the cloud, AI and financial services, and the build-out of its KLON-06 data centre in Slough.

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Deutsche Bank, which has vast experience in the structuring of sustainable, digital infrastructure assets, has provided financing to drive the expansion of the business in line with growing customer demand for GPU-powered computing. The funding will support Kao Data’s expansion into next-tier markets across the UK and continental Europe.

In late 2023 Kao Data also established a new capital structure with its shareholders Infratil Ltd, Legal & General Capital, and Goldacre Noé Group, which will provide incremental equity investment to accelerate Kao Data’s strategic growth plans.

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The debt facility, for which Deutsche Bank have been named mandated lead arranger and sole underwriter, will allow Kao Data to consolidate its debt with a single, large financial services organisation, refinancing those existing lenders who have played an integral role in the advancement of its secure, highly scalable, and sustainable data centre platform during the last decade.

Matthew Harris, CFO, Kao Data said, “The success of our new debt raise is testament to the growth of our business, our reputation for industry-leading operations and technical delivery, and both the scale and demand for world-class infrastructure, engineered for AI, I’d like to thank our lenders for their trust in our philosophy and ambition, which has been fully vindicated during the last decade, and all who have played an instrumental part in the evolution of the Kao Data platform. Looking forward, we are delighted to be working with one of the world’s leading digital infrastructure lenders in Deutsche Bank.”

Tom Phillips, Head of Institutional Business Development, Downing said, “Since our first meeting with the company’s founders in 2015, we’ve been early believers in Kao Data’s expertise, mindset, and its vision for growth. We were delighted to provide Kao Data with growth capital funding in 2017 and saw an attractive opportunity to support them in the development of their sustainable data centre platform, During the term of our investment, Kao Data has proved itself as an excellent example of what we look for in the businesses we like to back: a high-quality management team with a compelling business case. We are proud to have helped the company establish a firm foothold as a leader in one of the world’s most competitive, international data centre markets, whilst also delivering a successful return for our funds.”

Kao Data’s new financial capability with Deutsche Bank reinforces an exceptional twelve months for the organisation, which has secured several key customers from within the AI, hyperscale cloud, research, and financial services sectors.

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About Kao Data

Leading the way in the creation and management of data centres in the UK and Europe designed for artificial intelligence and advanced computing is Kao Data. They give their clients a safe, scalable, and environmentally friendly place to house their computing with an industrial-scale platform influenced by hyperscale.

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