- Compass Datacenters will securitize six data centers, raising $830M.
- The $3.6B portfolio is 100% leased to four investment-grade tech tenants.
- Moody’s awarded the planned ABS offering top AAA and AA ratings.
- ABS-backed debt has become a key financing tool for data center growth.
Compass Launches Major Data Center Securitization
According to Bisnow, Brookfield-backed Compass Datacenters is set to raise $830M by securitizing a portfolio of six fully leased hyperscale data centers in Phoenix and Toronto. The facilities, totaling 819KSF and offering 198.2 MW capacity, are leased to four major tech companies on long-term agreements.
Portfolio Details Boost Investor Appeal
The six data centers have a combined appraised value of $3.6B. Five are located on a Phoenix campus, accounting for nearly 90% of the value and 174.2 MW of the capacity. The Toronto facility, delivered in 2023, adds another 24 MW. All are occupied by single tenants except one, which has two occupants. Moody’s gives the planned ABS offering its highest AAA and AA ratings, citing minimal risk of default.
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Why Securitization Is Surging
The move continues Compass’ trend of financing its stabilized assets with structured transactions, including frequent ABS issuances. Data center securitization volumes have doubled annually since 2020, with brokerage forecasts suggesting issuances could hit $50B in 2026. Structured debt is now central to fueling the rapid pace of data center development across the US and Canada. That momentum mirrors other recent billion-dollar securitization efforts in the sector, underscoring how operators are increasingly tapping ABS markets to fund expansion while retaining long-term control of core assets.
Brookfield’s Ongoing Sector Push
After its 2023 acquisition by Brookfield and the Ontario Teachers’ Pension Plan, Compass has played a key role in Brookfield’s data center strategy. Major developments in North Carolina, Mississippi, and Virginia illustrate its expanding footprint in the hyperscale sector, supported by innovative capital markets moves such as this latest data center securitization.
