Saudi-backed data centre developer DataVolt expects to secure financing for all of its facilities under construction in the kingdom within six months, chief executive Rajit Nanda said.
The company is pursuing non-recourse financing, where lenders are repaid mainly through the revenue generated by each individual facility. The structure is common in power and water projects, but is more difficult to arrange for data centres hosting multiple customers rather than a single large technology company.
DataVolt’s Saudi pipeline includes a 1.5GW AI-focused data centre at Neom’s Oxagon industrial hub, with its first phase expected to be operational by 2028. The company is also developing a facility in Riyadh as part of its planned $5 billion investment in Saudi Arabia. It has not disclosed the combined value of its Saudi projects or its planned debt issuance.
The company tested the financing model in June by reaching financial close on up to $150 million in 12-year non-recourse financing for TAS-1, a 12MW data centre under construction in Tashkent, Uzbekistan. The European Bank for Reconstruction and Development is contributing $78 million alongside other development finance institutions.
Nanda said lenders assessed the strength of TAS-1’s customer contracts and the ability to replace customers in case of default. DataVolt said the first six-megawatt phase is almost fully leased.
Source: AGBI
