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Financing data centres in the US and Europe: Part 2
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.
