Yondr JK 1 prices USD $715m notes for Virginia data centre

Yondr Group and JK Land Holdings, through their joint venture Yondr JK 1, have priced USD $715 million of senior secured notes to help fund a data centre project in Loudoun County, Virginia.

The notes carry a 6.875% interest rate and mature in 2031. Interest will be paid in cash twice a year, at the end of June and December.

Proceeds will fund part of the construction of a turnkey data centre with 48 MW of critical IT capacity on a roughly 14.3-acre site. They will also cover debt service reserves, fees and other financing-related expenses.

The project is in Loudoun County, a key US data centre market because of its concentration of digital infrastructure and cloud computing facilities. The site adds to ongoing investment in Northern Virginia, which remains one of the most active regions for large-scale server campus construction.

Yondr JK 1 issued the notes in a private placement to qualified institutional buyers in the United States and investors outside the country. As a result, the securities were not registered for public sale in the US retail market.

The notes are backed by first-priority liens over substantially all of the issuer's assets, excluding certain property, as well as the equity interests held by the issuer's direct parent, Yondr JK 1 HoldCo. This security package gives lenders a claim over the project vehicle and its core assets.

Project financing

The deal highlights how data centre developers continue to tap debt markets to fund construction as demand for computing space rises. Large campuses require substantial upfront capital, and project-specific bonds and loans have become a common way to spread financing across construction and operating phases.

Yondr develops, owns and operates hyperscale data centres for customers that require dedicated sites for major cloud and digital workloads. JK Land Holdings is a Sterling, Virginia-based property group whose land activities include acquisitions for development, leasing, conservation easements and use by affiliated businesses.

JK Land says it has redeployed more than 22,000 acres of purchased land into conservation easements over the past decade, equal to 44 acres preserved for every acre developed commercially.

The use of secured notes for a single asset or project reflects a broader trend in digital infrastructure finance, with investors increasingly willing to back revenue-generating or near-complete facilities with long-term debt. Rising demand from cloud services, artificial intelligence workloads and corporate data storage has supported continued capital flows into the sector, even as financing costs remain above the low levels seen earlier in the decade.

For Yondr, the financing provides capital for another build in one of the world's busiest data centre corridors. For JK Land, the transaction further ties a local landowner and developer to one of North America's most concentrated digital real estate markets.

The notes are expected to be delivered through the Depository Trust Company once customary closing conditions are met.