With the boom in data center securitizations expected to continue, investors are voicing concerns over limited transparency and growing private credit involvement, with some holding back until spreads better reflect underlying risks.

The data center asset class remains in high demand from private credit, insurance portfolio managers, ABS buyers, and infrastructure funds, as artificial intelligence (AI)-focused tailwinds make the paper one of the most attractive available, said Boong-Kyu (B.K.) Lee, partner at Alston & Bird and specializing in structured & warehouse finance.

With investors seeking exposure to the infrastructure underpinning cloud computing and AI, and sponsors scaling portfolios aggressively, the data center securitization volume reached USD 20bn for the year-to-date (YTD) 2025, putting it on track to double the 2024 total of USD 12bn, as per KBRA. The issuance volumes are likely to grow considerably in 2026, driven by new deals as well as by upcoming refinance dates.