Changing demand for data centre financing

This growing appetite for data centres is pushing financial strategies to adapt, notably with the adoption of asset-backed securitisations (ABS) as a cost-effective method to refinance existing bank debt. According to Linklaters' analysis, USD $5.4 billion in securities backed by data centre revenues were issued in 2023, with an additional USD $3.7 billion issued within the first five months of 2024. In June 2024 a key milestone was reached with the issuance of the first EMEA data centre ABS, suggesting this as just the beginning for the ABS market within Europe's data centre sector.  

• How are these structures developing globally? 

• Does Europe's unique multi-jurisdictional legal landscape remain significant consideration? 

• What is the structural relationship between ABS and CMBS?