Lefdal Mine Datacenter: Lefdal Mine Datacenter secures €50 million funding through UBS to expand facility

Jun 01, 2021 | Posted by Eric Bell

Lefdal Mine Datacenter just announced that it had secured €50 million ($61.1 million) funding with UBS Asset Management to finance the expansion of a facility. The Company will use the five-year financing deal to expand its colocation space in Norway past its existing 20MW capacity. Jørn Skaane, CEO of Lefdal Mine Datacenter, commented that the credit facility helps in strengthening the Company’s financial position.

He also added that the funds would help improve the Company’s ability to meet market demands and invest in growth opportunities in the future. Besides, Lefdal Mine Datacenter used to be Olivine mine, and it has the potential of offering 120,000 sq meters of white space and 200MW of power capacity upon full buildout.

Lefdal Press Release on May 31, 2021:

Lefdal Mine Datacenter secure funding agreement with UBS Asset Management to finance facility expansion.
Lefdal / London, May 31st, 2021 – Lefdal Mine Datacenter (LMD) has secured funding to expand its facility to meet growing customer needs. The 5-year financing arrangement with UBS Asset Management’s Infrastructure Debt Platform, totalling EUR 50m, will support the expansion of the data center beyond the existing 20MW capacity.

LMD offers 120,000 m2 whitespace inside mountain halls across three levels in a former mine. Construction cost-per-MW is 30-50% lower than the industry standard, as well as providing leading natural security due to the mine’s infrastructure. Norway’s access to renewable power, low energy cost, favorable climate and developed infrastructure, as well as positive government policy, mean the country is regarded as one as one of the most attractive European locations for the development of data centers.

Jørn Skaane, CEO Lefdal Mine Datacenter, commented:
“We are pleased with the completion of this credit facility, which strengthens LMD’s financial position. This improves our ability to benefit from increased market demand and invest in growth opportunities in the years to come. We look forward to a good and long-term relationship with UBS Asset Management.”

Alessandro Merlo, Head of Investment, Infrastructure Debt at UBS-AM REPM, commented:
“Data centers are an attractive investment opportunity, which have further proved their importance and vital role for businesses during the pandemic crisis. We’re pleased to have worked with LMD to finance the unique development of this unique data center location. This transaction is the first investment for IDP in Norway and the third in the wider Nordic region – an important market for the platform. We are pleased to also support one of the greenest data centers in Europe with very limited environmental footprint and CO2 emissions, in line with our commitment to responsible investing in real assets.”