On September 10, 2026, DigitalOcean Holdings, Inc. (NYSE: DOCN) announced the execution of a definitive agreement for an equipment finance facility. The transaction, entered into with MUFG Americas Capital Leasing & Finance, LLC, MUFG Bank, Ltd., and other parties, provides the company with up to $725 million in committed financing. The facility is designed to fund the purchase of data center equipment, including GPU and CPU infrastructure, to support the company's AI-Native Cloud platform.
The agreement includes a Master Lease Agreement and a related Guaranty by DigitalOcean and its subsidiaries. Under the terms of the facility, the company intends to exercise an accordion option that allows for an increase of up to $300 million, bringing the total potential commitment to $1.025 billion. This increase is subject to obtaining commitments from new or existing lenders and meeting other conditions.
Financing under the facility will be provided as advances to fund up to 90% of the cost of equipment, with the remaining balance treated as prepaid rent. The company expects to account for these leases as finance leases. Interest on advances is set at a fixed rate equal to a term SOFR swap rate plus 2.75% per annum. The facility matures on September 10, 2027, with lease payments amortizing the advances in full by September 10, 2030.
MUFG Bank, Ltd. serves as the sole Administrative Agent and Collateral Agent, while Axos Bank, BMO Bank N.A., and Wells Fargo Bank, N.A. act as Joint Lead Arrangers and Joint Bookrunners. PNC Bank, N.A. serves as the Document Agent. The facility is secured by the equipment and related collateral and is guaranteed by the company and its subsidiaries.
