NTT Global Data Centers Capital Raise Overview
NTT Global Data Centers, a subsidiary of Japan’s NTT Inc., is seeking a minimum of $1 billion in fresh capital to fund the development of new data‑center projects in the United States. The company has engaged Citigroup Inc. to assist in raising the funds by selling equity stakes in a newly formed development company that will own and manage the pre‑revenue, early‑stage assets associated with these projects.
The equity offering may be scaled up if investor demand warrants a larger size, and the firm is also considering the addition of a credit facility to complement the equity component. Marketing materials have already been dispatched to prospective long‑term investors, specifically targeting pension funds and infrastructure funds. A formal sale process is anticipated to commence in the coming weeks.
The creation of the development company provides flexibility to attract a broader pool of investors, who can seek higher returns commensurate with the risk inherent in early‑stage data‑center assets. This structure enables NTT to tap into long‑term capital sources while retaining operational control over the assets.