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 and commercial mortgage-backed securitisations. We then move on to consider recent European data centre financings; their key features and how we expect this financing market to develop.
In this article we will not explain the basic fundamentals of financings, as this is intended for an audience which is already reasonably familiar with these structures.
In this first article of two, we seek to provide some background for those involved or interested in the financing of data centres, we describe what a data centre is, who uses it and some of its typical key features and hot topics. In a second article, we will consider how data centres are financed, both in the US and Europe, with a particular focus on the securitisation market.
25 OCT 2025The Law of Property Act 1925 (LPA) came into force 100 years ago this year. It received Royal Assent on 9 April 1925, and it came into force on 1 January 1926. The LPA brought overdue coherence, eased property transactions for the next century, and still forms the basis of English land law today. We set out why this law came about, how it helped, and how it continues to help us.
9 JUN 2025