DigitalOcean Holdings Announces $725M Equipment Finance Facility (up to $1.025B)

What Happened
DigitalOcean Holdings, Inc. (the Company) and its subsidiary DigitalOcean, LLC entered into Equipment Finance Agreements on September 10, 2026 with MUFG Americas Capital Leasing & Finance, LLC (lessor) and MUFG Bank, Ltd. (administrative agent). The facility provides up to $725 million of committed financing to acquire data center equipment, with an accordion feature to increase commitments by $300 million (to $1.025 billion aggregate). The Company expects to account for the leases as finance leases.

Key Details

• Committed amount: $725.0 million initially, accordion option of $300.0 million (total up to $1.025 billion).
• Advance mechanics: Lessee may request Advances through September 10, 2027 funding up to 90% of Equipment cost (Lessee prepays the balance as prepaid rent); title transfers to Lessee upon full payment.
• Repayment and rates: Rent amortizes each Advance in full by September 10, 2030; each Advance bears a fixed rate set at funding equal to a term SOFR swap rate + 2.75% p.a.
• Fees and protections: customary arrangement/upfront/agency fees paid at closing; commitment fee of 0.20% on undrawn amounts (rising to 0.40% after six months); prepayment premiums of 5% in year one and 3% in year two; facility guaranteed by the Company and certain subsidiaries and secured by the Equipment.
• Other: Equipment Finance Agreements include covenants and default provisions substantially consistent with the Company’s May 5, 2025 Credit Agreement; Company states it currently intends to fully exercise the accordion subject to obtaining commitments.

Why It Matters
This financing gives DigitalOcean a dedicated, largely secured source of capital specifically for purchasing data center equipment, supporting capacity and infrastructure needs without immediately drawing on cash or unsecured credit lines. The facility increases the company’s financed obligations (secured by equipment) and includes financial covenants similar to its existing credit agreement, which investors should monitor for potential impacts on leverage and liquidity. The company also issued a press release on September 10, 2026 announcing the transaction (Exhibit 99.1).