Cloud Capital, a global data center investment management firm, has closed a US$ 520 million asset-backed securities (ABS) issuance supported by a hyperscale data center in Northern Virginia, launching what the company describes as the industry’s first programmatic data center ABS Master Trust for a core joint venture.
The issuance is secured by an 80 MW data center leased to an investment-grade hyperscale customer under a long-term agreement and is the first data center ABS issuance to receive AAA ratings from Fitch Ratings, Morningstar DBRS and Kroll Bond Rating Agency.
The deal attracted strong demand from institutional investors despite challenging market conditions and matched the tightest spread for a data center ABS transaction since the onset of the conflict in the Middle East in 2026. According to a press release, the financing was completed through the newly established Cloud Capital ABS Master Trust, which will support the company’s stabilised Core Joint Venture Strategy, backed by Realty Income and a global institutional investor.
Hossein Fateh, Founder and CEO, Cloud Capital, said, “The launch of our ABS Master Trust represents another defining milestone in Cloud Capital’s evolution as a leading institutional investment platform for digital infrastructure, we have established a scalable source of long-term capital that will support the continued growth of our Core Strategy while enhancing value for our institutional investors.”
Jason Weaver, Executive Vice President and Head of Capital Markets, Cloud Capital, said, “Despite challenging market conditions, this transaction received significant demand from a broad and diversified institutional investor group and matched the tightest spread for a data center ABS transaction since the onset of the conflict in the Middle East in 2026, these facilities establish a repeatable financing platform that expands our access to institutional capital, diversifies our funding sources, enhances capital efficiency and positions Cloud Capital to finance future growth at an increasingly competitive cost of capital.”
Matt Bissonette, Senior Managing Director, Guggenheim Securities, LLC, added, “Cloud Capital has established a new benchmark for institutional financing in the digital infrastructure sector. The combination of premier stabilized assets, long-duration investment-grade tenancy, conservative down-the-fairway structuring and an innovative Master Trust framework generated exceptional demand across a broad spectrum of institutional investors.”
Net proceeds will be used to support the expansion of Cloud Capital’s Core Strategy, Guggenheim Securities acted as sole structuring advisor and sole active bookrunning manager, while Deutsche Bank Securities and Morgan Stanley served as passive bookrunners.