KBRA releases a report examining recent developments and emerging trends in data center project finance. Since KBRA’s prior research on the intersection of data centers and project finance, the sector has expanded rapidly, supported by artificial intelligence (AI), hyperscale cloud adoption, 5G, and the continued shift from on-premises IT infrastructure to outsourced capacity. KBRA has rated nearly $100 billion of data center-related debt during this period, with transaction volumes and structural complexity exceeding earlier expectations.

Recent financings have introduced additional considerations beyond traditional project finance structures. Power availability and interconnection timing have become increasingly influential, shaping lease renewals, pricing dynamics, and competitive positioning. At the same time, AI-driven scale and density requirements are affecting construction execution, modular build programs, and funding cadence. Refinancing risk has also become more prominent, particularly in partially amortizing structures, with greater emphasis on lease tails, amortization paths, and stressed interest rate scenarios. Differences in lease form—including triple net, double net, and modified gross structures—have further contributed to dispersion in coverage expectations and cash flow volatility.

This report provides an updated credit perspective on data centers structured as project financings, with a focus on cash flow durability, tenant credit quality, lease terms, power access, operating responsibilities, and refinancing considerations across construction, operating, and extension periods.

Click here to view the report.

Related Publications

• Data Centers: A Deeper Dive Into Colocation Transactions
• Data Centers in U.S. Securitization: A Primer
• Navigating the Data Center Landscape
• Data Centers: Intersection With Project Finance

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1013002

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