With a $50M line of credit, DigitalOcean will build more data centers

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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May 100 Amazons bloom?

There is of course no greater example of an enterprise making a business from selling excess cloud capacity than Amazon springing AWS from its loins.

David Linthicum, the cloud curator for Gigaom Research, notes that some other businesses are tempted to monetize a little excess capacity or to otherwise position themselves favorably by becoming small-scale cloud providers themselves. In asking, “What’s up with enterprises becoming cloud providers?“, David finds that such companies are actually most often providing services to customers or even to partners as an enhancement to their business relationships.

So no, they’re not angling to become Amazons. Primarily it’s a ready way to share information or access to internal applications in a secure and controlled environment–and to bring customers and partners further into their enterprise ecosystem.