Azrieli Group Secures Over €1 Billion in Financing for Norwegian Data Center Campus

Azrieli Group announced Thursday to the Tel Aviv Stock Exchange that its Norwegian subsidiary has finalized a significant financing agreement for the construction of a 80-megawatt data center campus. The agreement, signed Wednesday between Green Mountain Undheim Investment, a wholly-owned subsidiary of Azrieli's data center arm, and a foreign banking consortium, includes a credit line of up to €1.007 billion for the project's development. Additional credit facilities include up to €25 million for ongoing operations, €165 million for customer reimbursements, and approximately €103 million for VAT payments. The total package could reach up to €1.3 billion, with an option for a further €100 million expansion subject to bank approval.

Under the terms, Azrieli can finance up to 85% of recognized construction costs through debt, with funds disbursed as work progresses. Upon meeting the conditions for the initial withdrawal, Azrieli expects to recoup approximately €260 million in excess equity already invested. The interest rate is variable, set at Euribor plus a 2% to 3% margin annually, with the construction facility valid for up to seven years. Azrieli will provide guarantees for cost overruns and an unlimited guarantee for project completion, while maintaining a minimum credit rating of BBB-.

The campus is being built for an international technology company that signed a 15-year service agreement with Azrieli in December 2025. Azrieli initially projected the fully operational campus to generate an average net operating income (NOI) of around €117 million annually. This financing deal follows Azrieli's recent update that the client requested specification changes, leading to a delay in the delivery of the first 20 megawatts from March to July 2027, with the second phase also postponed by about three months. These mutually agreed-upon changes will postpone the start of revenue generation from the campus.