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 platform spans GPU and CPU infrastructure, core cloud services, inference, data and managed agent orchestration. The platform is designed to remain open across its technology stack without vendor lock-in.
DigitalOcean serves more than 680,000 customers and millions of developers globally, providing infrastructure for building, deploying and scaling applications and AI workloads.
The company said the new financing provides additional capacity while preserving balance-sheet flexibility and supporting its broader capital investment strategy.
KEY QUOTE:
“We continue to manage our balance sheet from a position of strength, with low leverage and healthy adjusted free cash flow margins. Securing incremental funding at an attractive cost of capital supports our ability to cost effectively add additional capacity to fuel growth in 2027, 2028 and beyond to meet the accelerating demand for our AI Native Cloud. We remain highly confident in our guidance for Q3 and the full year 2026 as well as in our outlook for 2027,” said Matt Steinfort, Chief Financial Officer of DigitalOcean.
Matt Steinfort, Chief Financial Officer of DigitalOcean
