365 Data Centers, a provider of hosting services and co-location facilities that is planning an expansion, has raised $16 million in Series B funding in addition to a $55 million credit line.

Existing investors, including Crosslink Capital and Housatonic Partners, invested in the Series B venture round. Fortresss Credit Corp., a unit of the well known hedge-fund Fortress Investment Group, provided the credit line.

365 officials said the money will be used for ongoing operations and growth in new markets and data center products, including cloud service offerings. The company currently operates in 16 markets. Its signature is “commitment free” contract terms targeting small and medium-sized businesses (SMBs) that don't want to be tied into long-term contracts.

So far, 365 has focused on mid-sized growing markets such as Cleveland, Indianapolis, Nashville, and Pittsburgh, but it also operates in major markets such as Dallas, New York, Seattle, Philadelphia, San Jose, and Washington D.C.

The company bought 16 data centers from Equinix in 2012. The company recently rebranded under the leadership of CEO John Scanlon, a data-center and telecom industry vet.