DigitalOcean Secures $725 Million Equipment Financing Facility To Expand AI Cloud Capacity
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DigitalOcean has secured a $725 million equipment financing facility to expand infrastructure capacity as demand increases for its AI-Native Cloud platform supporting inference and agentic workloads. The facility matures on September 10, 2030 and includes an accordion feature of up to $300 million, which DigitalOcean intends to exercise subject to obtaining additional commitments and satisfying other conditions. If fully utilized, the structure could provide the company with more than $1 billion of equipment financing capacity. DigitalOcean plans to use the financing to acquire GPUs, CPUs and other infrastructure equipment required to support customer demand for its AI-Native Cloud platform. The company said the structure is designed to more closely align cash outflows associated with infrastructure investments with the revenue generated from that additional capacity. MUFG Bank is serving as sole Administrative Agent and Collateral Agent. MUFG, Axos Bank, BMO Bank and Wells Fargo Bank acted as Joint Lead Arrangers and Joint Bookrunners, while PNC Bank is serving as Document Agent. The financing supports DigitalOcean's plans to add capacity during 2027 and 2028 as demand for AI infrastructure continues to accelerate. The company is positioning its cloud platform around production AI workloads, including inference and autonomous agent applications. DigitalOcean's integrated...
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