DigitalOcean secured up to $725 million in equipment financing, with an accordion option that could raise committed funding to $1.025 billion. The Facility is intended to fund GPU, CPU and other equipment for AI cloud capacity, while aligning cash outflows with Revenue and supporting Demand expected in 2027 and 2028.

Key Highlights

  • The financing can rise by up to $300.0 million to $1.025 billion, subject to new or existing lender commitments and other conditions.
  • Advances can fund up to 90% of equipment costs, with the Lessee contributing the balance as prepaid rent.
  • DigitalOcean secured up to $725 million in equipment financing for its AI-Native Cloud platform.
  • The facility matures on September 10, 2030, with funding for GPU, CPU and other equipment.

DigitalOcean Holdings, Inc. (NYSE: DOCN) secured up to $725 million in equipment financing to expand capacity for its AI-Native Cloud platform. The facility is designed to fund Data Center equipment and has a Maturity date of September 10, 2030.

$1.025 Billion Financing Capacity Planned

The Equipment Finance Facility includes an accordion option allowing committed financing to increase by up to $300.0 million, reaching $1.025 billion in total. Until September 10, 2027, DigitalOcean, LLC may request advances covering up to 90% of equipment costs, while the Lessee funds the remainder as prepaid rent. The equipment is acquired by MUFG Americas Capital Leasing & Finance, LLC and leased to the Subsidiary under Lease supplements.

Equipment Funding Tied to AI Cloud Demand

DigitalOcean intends to use the facility to acquire GPU, CPU and other equipment for its AI-Native Cloud platform. The company said the financing is intended to align cash outflows with revenue and support additional capacity for customer demand in 2027, 2028 and beyond. Rent is payable monthly in arrears, with each advance fully amortized by September 10, 2030. The company expects the equipment leases to receive finance-lease accounting treatment. Undrawn commitments carry a 0.20% per annum fee, rising to 0.40% six months after closing. The facility is guaranteed by DigitalOcean Holdings, Inc. and certain subsidiaries, and secured by the equipment and related collateral.