Compass Datacenters Seeks New ABS Funding Backed by Phoenix and Toronto Facilities
February 11, 2026
In a significant move to secure capital for expansion, Compass Datacenters is preparing to issue a new tranche of asset-backed securities (ABS). This financing strategy, increasingly popular in the capital-intensive data center industry, allows operators to unlock value from their operational assets to fund future growth, particularly as demand for AI and cloud computing infrastructure surges globally.
According to a pre-sale report from Moody's Ratings, the company is looking to raise funds against a portfolio of six newly developed, turnkey data centers. The underlying assets for the securitization are located in Phoenix, Arizona, and Toronto, Ontario. The facilities boast a combined capacity of approximately 198.2 megawatts (MW) across roughly 819,000 square feet of space.
Moody's has assigned provisional ratings to the forthcoming "2026-1" secured data center revenue term notes. The notes have an anticipated repayment date in February 2031, with a legal final maturity extending to February 2056. The portfolio is fully leased to four investment-grade hyperscale tenants, generating $219.6 million in annualized base rent. The top three tenants, which account for about 49%, 36%, and 11% of the rent, have remaining lease terms of 14.1, 14.8, and 7.8 years, respectively.
The Phoenix cluster comprises five facilities (PHX1A through PHX1E) totaling 174.2MW, constructed between 2023 and 2025. All were purpose-built for single tenants, with the exception of PHX1A, which houses two. The Toronto asset, known as YYZ II, is a 24MW facility built in 2021 and leased to a single high-credit-quality tenant.
This transaction follows hundreds of millions of dollars in ABS funding secured by Compass last year. The Dallas-based company, founded in 2011, is jointly owned by Brookfield Infrastructure Partners and the Ontario Teachers' Pension Plan Board, which acquired it for $5.5 billion in June 2023. Compass currently has 16 sites under development or in operation across the United States, Europe, and Israel.
The deal underscores the robust investor appetite for data center assets with long-term, creditworthy tenants. It provides Compass with efficient, non-dilutive capital to accelerate its development pipeline in key markets, reinforcing its position in a sector where access to timely financing is critical for scaling capacity to meet unprecedented demand.
Source: datacenterdynamics
