Azrieli Secures €1.4 Billion Financing for Major Norwegian Data Center
Azrieli Group's subsidiary Green Mountain secures a €1.4 billion financing package for a major 80-megawatt data center project in Norway, projected to generate €117 million in annual NOI.
Despite a minor scheduling delay, the Azrieli Group's new data center project in Norway is advancing significantly. Its subsidiary, Green Mountain, has secured an approximately €1.4 billion financing agreement to fund the 80-megawatt facility, which will be leased to an international technology client for 15 years with a 15-year extension option. The financing package includes a €1 billion credit line for construction, alongside smaller credit facilities for ongoing operations, VAT payments, and reimbursable expenses.
Financial Terms and Projected Yields
The financing terms feature a credit period of up to seven years with a variable interest rate based on EURIBOR plus a 2% to 3% annual margin. At current EURIBOR rates, the annual interest rate stands between 4.4% and 6.2%. Azrieli estimates that upon full operation, the facility will generate an average Net Operating Income (NOI) of €117 million annually. The project represents a cornerstone in Azrieli's expanding digital infrastructure portfolio, following its 90-megawatt campus agreement for TikTok in Norway.
Project Timeline and Global Expansion
Green Mountain recently reported a 16-week delay for the first phase of the project, following the client's request for technical specification modifications, pushing back initial service delivery. The second phase will see a 12-week postponement. Alongside the Norwegian project, Green Mountain is advancing data center initiatives in Germany, the UK, and additional Norwegian sites. Once fully operational, these agreements are expected to push the sector's annual NOI to approximately NIS 1 billion.
