Serverfarm Secures $589 Million in Landmark Inaugural Asset-Backed Securities Offering
February 5, 2026
In a significant move for data center financing, infrastructure developer Serverfarm has successfully closed its first-ever asset-backed securities (ABS) offering, raising $589 million. The transaction underscores the growing sophistication of capital markets in funding the massive infrastructure required to support hyperscale cloud providers and the artificial intelligence boom. The offering, finalized this week, was secured by three of Serverfarm's stabilized, income-generating data center facilities across North America. The portfolio includes a 153,000-square-foot facility in Atlanta with 12MW of critical IT capacity, a 300,000-square-foot AI-ready site in Chicago offering 21.3MW, and a Los Angeles facility with 17.5MW of capacity.
These assets primarily serve hyperscaler customers, providing a predictable revenue stream that formed the basis for the securitization. The $589 million issuance was structured into two tranches rated by S&P Global Ratings. It comprised $543 million of A-rated notes with a coupon of 5.377 percent and $46 million of BBB- rated notes at 5.866 percent. The deal attracted strong interest from 19 institutional investors, with an anticipated repayment date set for November 2030. Avner Papouchado, CEO of Serverfarm, stated that the transaction validates the company's operational track record. "This inaugural ABS issuance validates Serverfarm’s track record of delivering world-class hyperscale infrastructure with operational excellence," Papouchado said. "The strong investor response reflects confidence in our stabilized asset performance and our proven ability to develop and operate mission-critical data center facilities." The ABS offering is a core component of Serverfarm's broader capital strategy following its 2023 acquisition by Manulife Investment Management.
Recep Kendircioglu, global head of infrastructure at Manulife, emphasized the strategic importance of capital recycling, noting it is "a critical component of Serverfarm’s financing strategy and sustainable growth plans." This transaction represents the second major fundraising initiative by Serverfarm in recent weeks, following the securing of a massive $3 billion, 23-lender credit facility for new hyperscale campus development in North America.
Together, these deals provide a robust financial foundation: the ABS offering delivers long-term, non-recourse financing for stabilized assets, while the credit facility preserves development capital for aggressive global expansion, particularly in AI infrastructure. Serverfarm currently operates a portfolio of ten data centers across the United States, Europe, and Israel. The successful close of this sizable ABS deal signals a maturation in the data center investment landscape, providing a viable model for operators to unlock capital from stabilized assets and recycle it into new development, thereby accelerating the pace of digital infrastructure build-out to meet relentless demand.
Source: datacenterdynamics
