CREFC Releases Second Edition Data Center Financing Primer Highlighting Market Complexity
The CRE Finance Council (CREFC) has released the second edition of its Data Center Primer, detailing a rapidly expanding and increasingly complex financing landscape. The report highlights significant capital deployment in the sector, noting that as of October 2026, secured project bonds reached approximately $116 billion, supplemented by $44.2 billion in asset-backed securities (ABS) and $22.4 billion in commercial mortgage-backed securities (CMBS). While U.S. data center ABS and CMBS issuance rose 7% year-over-year to $21.9 billion through October 2026, recent quarterly trends show a 20.2% decline compared to the previous year. The report identifies critical headwinds including rising borrowing costs, regulatory shifts from the SEC regarding risk retention, and significant infrastructure constraints—specifically electricity availability and utility delivery timelines—that are now central to credit underwriting.
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Topics: Capital Markets Commercial Real Estate Data Center Financing Securitization