DigitalOcean, the cloud provider that’s a hit with developers, said today that it’s landed a $50 million credit facility provided by the investment firm Fortress Investment Group. The new credit line follows the startup’s recent $37.2 million Series A funding round led by Andreessen Horowitz.
DigitalOcean’s co-founder and CEO Ben Uretsky told the Wall Street Journal that the startup plans to use the loan to build out new global data centers with one slated for Frankfurt, Germany. The startup said in a news release that the credit line will help it lease more equipment at better rates as it attempts to build more international facilities.
Data centers aren’t exactly the cheapest things to build out, so taking a credit line makes sense for DigitalOcean. For example, [company]Google[/company] is aiming to spend $772 million on a giant data center in the Netherlands and Facebook’s data center in Altoona, Iowa was supposed to be a $1.5 billion investment. While DigitalOcean will more than likely not build the type of data centers seen at Facebook and Google, the company will still be plunking down a good amount of cash.
The New York-based startup’s unique pricing model — which involves “droplets” of compute, storage and networking resources all bundled together — has helped it carve a niche among developers looking for an easier way to get into the cloud as opposed to studying the rosetta stone that is the Amazon Web Services pricing matrix.
For a more in-depth look at what DigitalOcean has been doing to distinguish itself in the highly competitive world of cloud providers, be sure to listen to Uretsky chat it up with Gigaom last July on The Structure Show.
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