- DataBank is seeking to raise $1.067B by securitizing three stabilized US data centers in Northern Virginia, Atlanta, and New York.
- Two of the properties are single-tenant hyperscale facilities leased to unnamed but investment-grade tenants; the third is a multitenant colocation site in New York.
- Asset-backed securities (ABS) have become an increasingly common strategy for data center operators, providing lower-risk capital in a tight transaction market.
DataBank Taps ABS Market Again
Dallas-based DataBank is returning to the asset-backed securities market to fund its growth, reports Bisnow. The company aims to raise $1.067B by securitizing three stabilized, fully leased data centers. The facilities total 491K SF and offer 100 megawatts of capacity. They are located in key US markets: Ashburn, VA; Atlanta, GA; and Orangeburg, NY.
According to a presale report by Moody’s Ratings, the offering is structured around the stability of long-term leases and the investment-grade credit of the tenants. This approach has become a common trend in recent data center ABS deals.
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Inside The Assets
- Atlanta – ATL4: A 40 MW single-tenant facility built in 2024, leased through 2035 with renewal options. The tenant is investment-grade but undisclosed.
- Ashburn, VA: Located in Loudoun County’s Data Center Alley, this 40 MW site was custom-built in 2022 for a single investment-grade tenant under lease through 2037, with a long renewal option.
- New York – Hudson Valley: A 20 MW multitenant colocation center developed in 2022 and fully leased to eight tenants. The anchor, holding 80% of the capacity, is not investment-grade.
Financing Trend Grows In Popularity
This marks DataBank’s fifth ABS transaction since 2021. The company still holds $2.2B in debt from previous securitizations. It has also attracted equity capital, completing a $2B raise led by AustralianSuper in 2024.
More broadly, ABS activity is surging across the data center sector. JLL reports 14 data center ABS deals totaling $7.7B in the first half of 2025. That’s up from 11 deals and $5.5B during the same period last year.
Why It Matters
With few stabilized data centers changing hands, firms like DataBank are turning to ABS structures to unlock capital from leased assets. These deals offer investors a stable, credit-backed entry into the data center sector. They also provide operators with the capital needed to fund expansion.
As Moody’s analyst Terrence Donohue notes, “We see it as a kind of exit financing. Once they’re stabilized, this is kind of that natural exit point.”
What’s Next
DataBank is continuing to scale. After announcing three new campuses in 2024 totaling 800 MW, the company has filed for additional development in Texas and acquired a new site in New Jersey. Expect ABS deals — and the data center expansion they enable — to remain a fixture in the sector’s financing toolkit.
