- What Starwood Capital has written one of the biggest development loans issued in Europe in recent years
- Why Backing European digital infrastructure developer Echelon Data Centres
- What next Financing used to build-out four sites in Ireland
Echelon Data Centres, a developer and owner of digital infrastructure assets, has secured an €855m construction loan to build-out its platform of Irish data centres, React News can reveal.
US private equity giant Starwood Capital – through affiliates – has backed Irish-owned Echelon with the debt facility.
One of Europe’s largest construction loans of last year
The loan, believed to be the largest construction facility issued in Europe over 2021, will facilitate the construction and completion of data centres at Echelon’s four Irish sites.
This financing demonstrates our continued conviction in the data centre sector
David Smith, Starwood
The Irish sites – DUB10, DUB20, DUB30 and DUB40 – are located around the edges of Dublin, offering a combined capacity of circa 400MW. The gross development value of the Irish sites is estimated to be over €5bn.
Echelon also has two sites in the UK including the LCY10 site in London’s Docklands which is now ready for occupation. Affiliates of Starwood also helped finance the central London project.
Lorcain Egan, head of European and Asian lending for Starwood Capital Group, said: “Following on our joint venture data centre developments with Echelon in the UK we are excited to continue our support for the team with this landmark financing in Ireland.”
David Smith, senior vice president at Starwood Capital, added: “This financing demonstrates our continued conviction in the data centre sector and Starwood’s long-term commitment to the Irish market.”
Echelon was founded in 2019 by Niall Molloy, the current management team brings together various household names in data centre development, tech and finance. In December, React News revealed that Trevor Whelan had moved from Eastdil Secured to join the growing business.
We understand that powering a data centre with 100% renewable energy cannot happen overnight, however our focus is on ways of achieving the goal and then mitigating impacts as we progress towards it
Niall Molloy, Echelon Data Centres
Echelon’s long-term vision is that all data centre infrastructure should be powered by 100% renewable energy. Echelon’s DUB20 in Arklow will host a partnership with SSE Renewables to bring 520MW of offshore wind power into the grid.
Niall Molloy, CEO of Echelon Data Centres, said: “Data centres are essential infrastructure – now, post-pandemic, more than ever. If we are to continue to benefit from low-cost, reliable and time-saving tech such as Zoom and Teams, if we’re to enjoy the speed of 5G, if we are to stream on-demand and if we are to look forward to the future of AI and the IoT, then increasing data centre capacity is a given.
If we are to stream on-demand and if we are to look forward to the future of AI and the IoT, then increasing data centre capacity is a given
“Echelon Data Centres is committed to providing that capacity sustainably – taking into account its responsibilities to people, the community, the economy and to the environment – particularly in the area of power. We understand that powering a data centre with 100% renewable energy cannot happen overnight, however our focus is on ways of achieving the goal and then mitigating impacts as we progress towards it.”
