DigitalOcean lands $725M equipment facility to fund data center buildout
What's the deal? DigitalOcean has secured up to $725 million in committed equipment financing to fund data center equipment purchases, disclosed in a September 10, 2026 SEC filing. MUFG Americas Capital Leasing & Finance acts as lessor, with MUFG BankDealroom has a profile for this one. Try Dealroom → as administrative and collateral agent.
How it works: Under the arrangement, MUFG buys the equipment and leases it back to DigitalOcean, covering up to 90% of costs per advance; DigitalOcean provides the rest as prepaid rent. Each advance carries a fixed rate of the term SOFR swap rate plus 2.75% and fully amortizes by September 10, 2030.
The bigger number: The facility includes an accordion option to add $300 million, lifting total financing to $1.025 billion. DigitalOcean said it intends to fully exercise that option, contingent on lender commitments and other conditions.
Why now? The company can request advances until September 10, 2027, giving it a year-long window to build out capacity. Title to the equipment transfers to DigitalOcean for nominal consideration once lease payments are complete.
The signal: The deal ranks in the 96th percentile among US enterprise software debt rounds tracked in our database, a sign of the capital intensity now facing cloud providers competing for compute. Rather than dilute shareholders, DigitalOcean is using asset-backed debt to finance hardware — a structure that ties the cost directly to the equipment it funds.
Read more: kalkinemedia.com
Image credit: Cory M. Grenier
