AI Data Centers
A data center is financed on its lease, not the developer's balance sheet.
A hyperscale campus costs billions to build, more than its developer can fund from cash flow. The debt is raised against the asset and the lease behind it, not the sponsor's credit. We structure that financing and source it from the funds and lenders that lead these deals.
01 / The Sector
The endpoint of the AI supply chain, and its heaviest asset.
Every chip, every rack, and every megawatt in the AI supply chain resolves into a data center. It is the most capital-intensive asset in that chain, running to billions of dollars per campus. The developers and neoclouds building them cannot fund that from cash flow, so the capital has to be raised against the asset itself: the building, the equipment, and above all the lease that pays for it.
The constraint
Billions per campus, funded on the asset, not the sponsor.
The build cost dwarfs any developer's balance sheet. The financing has to stand on the campus and its contracted revenue, ring-fenced from the parent.
02 / How We Finance It
The instruments that fund a campus.
A campus is not financed with one loan. It is financed in layers, each matched to a stage of the build and a source of repayment.
Project Finance
Non-recourse debt sized to a signed hyperscale lease. The lease payments service the loan, and the parent balance sheet is never encumbered, so the campus stands on its own contracted revenue.
Dedicated deskConstruction and deferred debt
Capital drawn in stages against build milestones, from foundations to fit-out. Interest is capitalized until the facility energizes and the lease begins to pay, matching the debt to the moment the asset earns.
Private Credit
For a developer below investment grade, term debt sized to contracted capacity rather than a public rating. Committed fast enough to hold a construction timeline that a syndicated process would miss.
Dedicated deskStructured Debt
Once a facility is stabilized and fully leased, its cash flows are refinanced through securitization at a lower cost of capital. The equity that built the site is released to fund the next one.
Dedicated deskEquipment Finance
The transformers, generators, and chillers financed on their own delivery clock, secured against the equipment itself. Long-lead gear is funded without tying up the construction facility.
03 / What Secures The Debt
What the lenders actually underwrite.
A data center is strong collateral because the security is layered: a contracted revenue stream on top of hard, enduring assets. The lease repays the debt, and the campus stands behind it if the lease does not.
- 01
The signed lease and its payments
The contracted revenue from a creditworthy tenant is the primary source of repayment, and the loan is sized to it.
- 02
The building and the land
The physical campus and the site it sits on, a hard asset with enduring value in a supply-constrained market.
- 03
The power and cooling equipment
Transformers, generators, switchgear, and chillers, financed against and secured by the equipment itself.
- 04
The stabilized operating cash flows
Once the facility is energized and leased, its steady net revenue supports a refinancing at a lower cost.
04 / Contact
Financing a data center?
Tell us the campus, the lease, and where the build stands. We will tell you how we would structure the debt and which capital would fund it.