DigitalOcean Secures $725M Equipment Finance Facility for Capacity Expansion

DigitalOcean Holdings, Inc. has entered into a new equipment finance facility providing up to $725 million in committed financing to fund the purchase of data center equipment. The agreement is designed to support accelerating customer demand for its AI-Native Cloud platform.

Key Details

• Financing Amount: The facility provides $725 million in committed financing and includes a $300 million accordion feature, allowing for a potential total of $1.025 billion.
• Purpose & Use: Proceeds will be used to acquire GPU, CPU, and other data center equipment to expand capacity through 2027 and 2028.
• Key Terms: Advances under the facility will bear a fixed interest rate equal to a term SOFR swap rate plus 2.75% per annum. The financing matures and fully amortizes by September 10, 2030.