European data center operator AtlasEdge has secured new financing to fund its build-out in Lisbon, Portugal.

The company this week announced it has secured €253 million ($294.8m) in green financing to support the development of its campus in Lisbon. The funds will be used towards the build-out of the first and second buildings at the company’s new campus, delivering 21.1MW capacity across the two facilities.

The seven-year senior secured Term Bond facility is divided into two tranches: €63m ($73.4m) to finance the construction of LIS001, and another €190m ($221m) facility to finance the construction of LIS002.

Banco Santander and ING acted as bookrunners, with participation from additional lenders, where ING acted as the Sole Sustainability Coordinator.

AtlasEdge entered Portugal last year, breaking ground on the first building at its planned campus in Carnaxide in April 2024.

The Lisbon campus will deliver 30MW across three phases, fuelled by a €500m ($582m) investment.

LIS001 launched this week, with capacity already contracted by “top-tier customers,” and service set to go live by the end of 2025.

LIS002 is in the master planning phase, with ready for service scheduled for 2028.

AtlasEdge has also acquired a 10,000 square-meter (107,640 sq ft) plot contiguous with LIS002, which will host the campus’s third data center, LIS003.

Tesh Durvasula, CEO of AtlasEdge, said: “Today’s launch, the addition of LIS002 and LIS003, and this green financing demonstrate the momentum we’re building across the Iberian Peninsula – a region with significant opportunity to scale. This is a sustainable, strategically located campus and a game-changer for customers operating in the Portuguese market.”

“ING’s appetite for the data center sector is stronger than ever, and we are proud to support AtlasEdge’s impressive expansion plans,” said Sicco Boomsma, managing director, EMEA at ING. “This innovative green financing provides the flexibility to scale the Lisbon campus, building on the successful launch of LIS001.”

“We are proud to be powering AtlasEdge’s growth in the Iberian Peninsula,” added Robert Drew, managing director, head of TMT global banking, UK, at Banco Santander. “This transaction underlines our commitment to digital infrastructure and sustainable development in Portugal, strengthening Lisbon’s role as a regional connectivity hub.”

Ropes & Gray International LLP served as legal advisers to AtlasEdge, Norton Rose Fulbright LLP served as legal advisers to the lenders, Analysys Mason served as commercial due diligence adviser to the lenders, Haskoning served as technical due diligence adviser to the lenders, and BDO LLP served as financial model auditor to the lenders.

Formed as a joint venture between telecoms company Liberty Global and digital infrastructure fund DigitalBridge in 2021, AtlasEdge operates regional data centers across Europe. Digital Realty has also invested in the company.

The deal brought together DigitalBridge’s Edge assets and Liberty Global’s real estate portfolio, with several Liberty Global operating companies acting as anchor tenants: Virgin Media in the UK, Sunrise-UPC in Switzerland, and UPC in Poland. In November 2021, Atlas acquired twelve data centers across Europe from Colt Data Centre Services (DCS) and acquired several local operators, bought a site in Leeds in 2021, acquired Germany’s DC1 in 2022, and bought a facility in Austria last year.

The company has previously secured a €725m ($800m) credit facility.