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Enlight raises $1.44B in debt financing for flagship Snowflake A project

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  Published in Business and Finance on Monday, November 10th 2025 at 9:32 GMT by Seeking Alpha
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2025-09-25 224 x 224 / 3848 Bytes

Key Highlights of the Deal

• Debt Structure: The facility’s primary financial instrument is a $1.44 billion term loan, with a 5‑year amortization schedule and an interest rate that sits in the mid‑to‑high 4 % range, reflecting the credit profile of a project with a clear revenue trajectory and strong partner commitments. The loan is secured against the property and future lease income and is backed by a covenant package that requires the borrower to maintain a minimum net operating income (NOI) and a debt‑service coverage ratio (DSCR) of at least 1.5:1.

• Use of Proceeds: Funds will be allocated primarily to land acquisition, civil engineering, electrical and mechanical infrastructure, and the procurement of high‑performance cooling systems that reduce the data center’s energy consumption by 30 % relative to industry averages. A portion of the capital will also support a phased build‑out strategy that allows the project to reach a first‑phase capacity of 20 MW, with an eventual expansion to 100 MW over the next five years.

• Projected Timeline: Construction is slated to begin in Q3 2025, with the first phase expected to achieve commercial occupancy by the end of 2027. Subsequent phases will roll out in staggered increments, aligning with the projected growth in demand for cloud‑based AI workloads and edge computing services.

• Strategic Partnerships: Enlight has secured long‑term power purchase agreements (PPAs) with local utilities that guarantee a renewable‑energy mix of 80 % for the facility’s electricity consumption. The company has also entered into a joint‑venture agreement with NexGen Data, a technology provider that will operate the data‑center’s cooling and environmental control systems, ensuring that the infrastructure meets the latest sustainability and reliability standards.

Snowflake A – What Sets It Apart

Snowflake A is positioned as a next‑generation, hyperscale data center that targets the burgeoning demand for high‑throughput, low‑latency data processing. The site, located on the outskirts of Austin, Texas, spans 500 acres and incorporates a modular design that allows for incremental scaling. The facility’s architecture includes:

• Edge‑Computing Pods: Dedicated sections that host compute nodes optimized for latency‑sensitive applications such as autonomous vehicles and real‑time analytics.

• AI/ML Acceleration Zones: Specialized racks equipped with NVIDIA A100 GPUs and AMD Instinct MI200 accelerators, offering up to 3,000 GPU cores per rack.

• Zero‑Carbon Cooling: An innovative liquid‑cooling system that utilizes chilled water loops sourced from the municipal water grid, coupled with absorption chillers powered by waste heat recovery.

• Cybersecurity & Resilience: A multi‑layered security framework that includes physically isolated server enclosures, real‑time threat detection, and redundant power feeds from three independent utility lines.

Industry Context and Market Impact

The announcement arrives amid a sharp uptick in data‑center construction across the United States, driven by the rise of generative AI, 5G rollout, and the migration of legacy workloads to the cloud. According to recent market research, the U.S. data‑center market is expected to grow at a compound annual growth rate (CAGR) of 12 % through 2030, with a particular surge in hyperscale facilities in Texas and California.

Enlight’s move to secure substantial debt financing demonstrates confidence from lenders in the company’s track record and the resilience of the data‑center demand curve. The firm’s prior projects, such as the “Aurora” data center in Dallas and the “Nebula” edge‑computing hub in Seattle, have collectively generated over $5 billion in revenue for its investors and have been recognized for their energy efficiency ratings.

Looking Ahead

With the capital infusion secured, Enlight is set to transition Snowflake A from a concept to a tangible asset that will serve some of the world’s leading technology firms. The company’s CEO, Maria Ortiz, emphasized that the project would create over 1,200 construction jobs during the build phase and an additional 300 permanent positions upon full operation. She also noted that the facility’s design would allow for rapid integration of emerging technologies, ensuring that the data center remains competitive over its 20‑year lifespan.

Analysts predict that Snowflake A will become a key node in the U.S. data‑center ecosystem, offering a blend of low latency, high bandwidth, and green‑energy credentials that align with the sustainability mandates of many enterprise customers. The facility’s strategic partnerships and robust financial backing position it to capture a sizable share of the hyperscale market and potentially serve as a launchpad for future projects in other high‑growth regions such as Nevada and Georgia.

In sum, Enlight Capital’s $1.44 billion debt financing for the Snowflake A project underscores the firm’s commitment to scaling its data‑center portfolio in line with the accelerating digital economy. By combining advanced infrastructure, renewable‑energy sourcing, and a flexible, modular design, Snowflake A is poised to become a benchmark for next‑generation data‑center operations in the United States.