Ares Management Makes Major AI Infrastructure Bet with $2.4 Billion Data Center Financing

Stock News
Feb 10

Alternative asset manager Ares Management LP (ARES.US) is providing $2.4 billion in debt financing to Vantage Data Centers. A portion of the funds may potentially support infrastructure required for the collaboration between Oracle (ORCL.US) and OpenAI. Ares stated in an email declaration that it has agreed to extend a $1.6 billion credit facility to Vantage and has already disbursed approximately $330 million for the initiative. The capital will be used to support the development, construction, and operation of Vantage's data center portfolio across North America, as well as for refinancing existing debt. Amid the surge in artificial intelligence, Ares and other lenders are accelerating efforts to supply the substantial capital needed for building related infrastructure. The Los Angeles-based firm previously indicated plans to raise over $8 billion in equity capital in the near term to support data center-related investments. Ares noted that Vantage's portfolio encompasses 17 campuses primarily supporting cloud computing and AI technologies. Assets within the portfolio are already leased to major cloud service providers under long-term agreements. Vantage is backed by DigitalBridge Group Inc., which agreed to be acquired by Masayoshi Son's SoftBank Group for approximately $3 billion in cash at the end of last year. DigitalBridge's portfolio also includes several digital infrastructure operators, such as Aims Group, AtlasEdge, DataBank, Switch, and Yondr Group.

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