In our previous article ('The key characteristics of data centres in the US and Europe: an overview for those involved in financings – Part 1' (2025) 10 JIBFL 694) in order to provide some background as to data centres as an asset class we looked at data centres' real estate fundamentals where in the world they are located and different types of data centre. We also touched on concerns around energy electricity heating cooling and water all of which in turn make ESG topical in the context of data centres.
In this second article we will discuss the financing of data centres focusing particularly on the capital markets. No consideration of this topic would be complete without considering the pre-eminent US data centre financing market so we will look at this and in particular the division there between asset-backed securitisations...