Digital Edge has recently secured its first-ever green loan to back the initial phase of its 100 MW data center project, SEL2, situated in Seoul—the forthcoming largest commercial colocation facility in South Korea. This financing marks the first-ever green loan for a data center project in South Korea
SEL2 is set to harness Digital Edge’s cutting-edge architecture, targeting industry-leading energy efficiency standards. The design anticipates achieving an annualized Power Usage Effectiveness (PUE) of 1.27, a notable improvement compared to the global industry average of 1.55.
The project will integrate Bloom Energy fuel cell technology to curtail greenhouse gas emissions and ensure a more predictable and reliable energy supply for the data center’s foundational lighting and energy requirements. It will also employ highly efficient engineering design principles that will further minimize water and energy consumption.\
For a project to qualify as a Digital Edge “green” initiative and secure funding through a green loan, it must satisfy specific environmentally linked eligibility criteria. The green loan structure adheres to the latest Green Loan Principles released by the Loan Market Association, Asia Pacific Loan Market Association, and the Loan Syndications & Trading Association.
The financing consortium comprises both international and domestic banks, with the loan scheduled to be disbursed in two tranches—a fixed tranche and a floating tranche—over a 5-year term.
Leading the coordination efforts for the green loan are Crédit Agricole CIB and ING Bank N.V., serving as joint Green Loan Coordinators for this groundbreaking financing initiative.