DataBank Plans to Raise $665M Through Securitization of $4.2B Colocation Data Center Portfolio
DataBank plans to raise $665 million by securitizing a $4.2 billion portfolio of multitenant retail colocation data centers, which includes 36 facilities across 14 U.S. markets. The portfolio, encompassing over 1.6 million square feet and leased to more than 1,750 tenants, is recognized for its high-quality locations that support real-time applications and AI inferencing. This move aligns with a growing trend in data center-backed asset-backed securities, which have seen annual issuance volumes double since 2020.
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Data center firm DataBank aims to raise $665 million by securitizing a $4.2 billion portfolio of multitenant retail colocation data centers. The portfolio, covering 36 facilities across 14 U.S. markets, spans over 1.6 million square feet and provides 258 megawatts of capacity, leased to more than 1,750 tenants.
Unlike typical transactions that focus on single-tenant hyperscale assets, this offering is notable for its backing of numerous multitenant facilities. Moody's Ratings has described the data centers as high-quality, strategically located to support real-time applications and AI inferencing.
DataBank's previous ABS transaction in September raised $1.067 billion from three fully leased data centers. The trend of data center-backed asset-backed securities (ABS) has accelerated, with issuance volumes doubling annually since 2020, and predictions suggest structured debt tied to data centers could reach $50 billion in 2026.
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