Data Center Capital Markets Expand with DataBank Securitization

DataBank to raise $665M by securitizing 36 colocation data centers, signaling growing demand in data center capital markets.

January 16, 2026

Nina Dale

DataBank plans to raise $665M by securitizing 36 colocation data centers across 14 US markets.
The asset-backed securities are supported by a $4.2B multitenant portfolio totaling 1.6M SF and 258 MW.
This ABS issuance is distinct as it is anchored by large-scale, multitenant colocation rather than single-tenant hyperscale.
Shorter lease terms and asset age create unique risks compared to typical data center ABS deals.

Key Takeaways

Major Securitization Move

DataBank is set to raise $665M by securitizing a portfolio of 36 multitenant colocation data centers, per Bisnow. The transaction, backed by a $4.2B asset pool, positions the Dallas-based operator at the forefront of capital markets activity within the data center sector.

The facilities span 1.6M SF of space and deliver 258 MW of capacity, leased to more than 1,750 tenants under 12,065 contracts. This marks a departure from the norm, with most asset-backed securities in the sector based on small collections of single-tenant hyperscale assets.

Broader Trends in Data Center Capital Markets

Asset-backed securities have become increasingly central to data center development financing. Data center capital markets activity around ABS has sharply grown, with annual issuance volumes doubling since 2020. JLL projects the value of structured debt tied to data centers could hit $50B in 2026. This surge coincides with a wave of large-scale debt transactions involving data center assets, including major refinancing deals by institutional players.

Despite the sector-wide boom, large colocation-focused securitizations like DataBank’s remain unusual. Moody’s notes only five regular issuers of such deals, with most comprising just a few assets or single-tenant properties.

Risk Factors for Colocation ABS

While DataBank’s geographic and tenant diversity spreads risk, the short lease terms typical for colocation facilities introduce volatility. About 45% of customer contracts in this portfolio expire before year-end, compared to the 10-plus year terms found in hyperscale deals.

Further, colocation data centers are often older than purpose-built hyperscale sites, raising questions about obsolescence risk. Moody’s highlights these factors as key considerations in Data Center capital markets when evaluating this issuance and similar future offerings.

What’s Next

DataBank’s move demonstrates growing investor appetite for diversified data center-backed securities. As capital market structures evolve, multitenant colocation portfolios may increasingly find footing alongside hyperscale assets in future financings.