SFA Research Corner: Financing Pressures Drive Innovation in Data Center Financing

Demand for data centers remains strong, however, tariffs and rising operational costs have begun to slow project timelines as operators and owners navigate new economic pressures. Commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) have emerged as key funding sources, while private credit has stepped into fill gaps in the funding structure. This diversification of financing options has helped this sector keep pace with growing demands and will be pivotal for its sustainable growth.