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Scala Takes Major Leap in Sustainability: US$ 215 Million Green Debenture Issuance for Hyperscale Data Center Expansion

Scala Data Centers, a leader in the Latin American Hyperscale data center market, recently announced a significant financial move: the issuance of green debentures totaling US$ 215 million. These funds are earmarked for the development of new data centers that not only cater to the growing Hyperscale market but are also committed to sustainability, operating entirely on renewable energy sources. This move aligns with Scala’s ongoing commitment to energy-efficient, carbon-neutral operations.

Located in São Paulo, Scala Data Centers is setting a precedent in the Brazilian data center industry with this being the second largest issuance of its kind in the country, and interestingly, the largest was also by Scala. The funding will be used to construct state-of-the-art data centers in Brazil, aimed at meeting the escalating demand for cloud services among Hyperscale customers. These facilities are designed to be highly efficient, with an average annual Power Usage Effectiveness (PUE) of below 1.45.

Marcos Peigo, co-founder and CEO of Scala, highlighted the company’s focus on future-proof construction. This involves building data centers that can adapt to increasing rack densities and evolving technology without disrupting current operations. Peigo also mentioned that these developments are in sync with the booming Latin American market, which is expected to grow substantially in the coming years.

Ana Romantini, Scala’s VP of Finance, pointed out the structured approach taken for this issuance, which saw the involvement of multiple financial institutions. The company’s request for proposals attracted significant interest, a testament to Scala’s robust strategy for sustainable growth.

A notable aspect of this issuance is Scala’s decision to opt for green debentures over Sustainability-Linked Bonds (SLB). This choice reflects the company’s existing achievements in sustainability, including operating the most energy-efficient data centers in Latin America and its carbon-neutral operations. Furthermore, Scala’s commitment extends to community initiatives focused on professional and educational development.

The issuance was coordinated by Bradesco BBI, with UBS BB also involved. It was strategically issued in Brazilian Reais with a swap to US Dollars, aligning the debt issuance with the currency of Scala’s client contracts. This approach is a safeguard against potential exchange rate fluctuations.

This financial move follows Scala’s first green debenture issue in December 2022, which was a groundbreaking event in Brazil’s data center sector and the country’s largest debenture issuance at the time. These consecutive issuances underscore Scala’s position as a frontrunner in sustainable growth within the data center industry.

Read the full release here.

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