EdgeCore Secures $1.9B in Equity
EdgeCore Digital Infrastructure has completed its third round of financing of the year.
The firm secured another $1.9 billion in equity, bringing the total investment obtained this year to more than $4.2 billion. Partners Group—which acquired EdgeCore in 2022—led the oversubscribed capital raise and provided a substantial amount as anchor.
The Denver-based wholesale developer and operator will use the funds to grow its presence in the hyperscale data center market.
EdgeCore’s most recent project is in Culpeper, Va., where it’s working on a 1.4 million-square-foot campus rising on 120 acres. The firm will initially build three facilities, each capable of supporting 72 megawatts.
At full build-out, the campus will be capable of supporting up to 432 megawatts. Rappahannock Electric Cooperative will deliver the power starting in 2028.
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This new development is taking shape within the recently established Culpeper Technology Zone, a 690-acre site that local authorities have designated mainly for data center projects. Apart from EdgeCore, five other developers are in various stages of commitment to the site, including Cielo Digital Infrastructure, CloudHQ, Copper Ridge, DataBank and Peterson Cos., Data Center Frontier reported.
The site has access to sufficient infrastructure and is close to the Network Access Point of the Capital Region. “Markets such as Culpeper are at the core of our vision, given that they offer the right combination of robust utility power and proximity to Tier 1 infrastructure,” Julie Brewer, executive vice president of finance at EdgeCore, told Commercial Property Executive.
Growing a significant hyperscale portfolio
EdgeCore is doubling down on its commitment to develop hyperscale data centers, which are used for AI and other HPC applications. With its new Culpeper campus, the company is now present in five markets—the other four being Ashburn, Va., Santa Clara, Calif., Mesa, Ariz., and Reno, Nev.
In January, EdgeCore secured $1.9 billion in green financing for its 3.1 million-square-foot campus in Mesa. In March, it closed on another $440 million in debt to fund the expansion of its Santa Clara property.
Last August, the firm broke ground on its first data center project in Reno, set to provide 216 megawatts of IT load by late 2025. The 1.5 million-square-foot campus is within the Tahoe Reno Industrial Center.
Data center development outpaces power delivery
According to a recent CBRE report, data center under-construction activity across primary markets hit a record high in 2024’s first half, up 69 percent since last year to 3.8 gigawatts. As data center developers usually buy electricity in advance through a power purchase agreement, this surge in construction led to longer lead times for such infrastructure. This, in turn, led to delays in completions.
The same source shows that power availability is the top consideration when it comes to site selection. However, this did little to curb investors’ appetite for digital infrastructure—which mostly targeted new developments—as several massive deals closed this year.
For example, funds managed by Blue Owl Capital Inc., Chirisa Technology Parks and PowerHouse Data Centers recently formed a $5 billion joint venture, focused on developing hyperscale AI and HPC data centers for CoreWeave Inc.
Earlier similar investments included the $9.2 billion in equity raised by Vantage Data Centers, as well as STACK Infrastructure’s $1.3 billion financing, both announced in June.
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