EdgeCore raises $521M in debt against leased Silicon Valley data center
What's the deal? EdgeCore Digital Infrastructure has completed a $521 million asset-backed securitization (ABS) backed by its fully leased SV01 data center in Santa Clara, California. MUFG led as sole structuring advisor, with ING and MUFG as joint book-runners and First Citizens Capital Securities and Huntington Capital Markets as co-managers.
The money: EdgeCore will use the proceeds to refinance construction loans and fund further green data center development. The deal sits in the 96th percentile by size among all-time debt rounds in the sector, based on a sample of 1,177 comparable deals.
What's the endgame? This is EdgeCore's second ABS financing, following a $235 million inaugural issuance in 2025. Combined, the two deals finance 62MW of IT capacity—more than double the previous total—both leased to the same high investment-grade hyperscale tenant.
Why now? Data center developers are chasing long-term capital to meet surging demand for AI and cloud computing. ABS lets operators raise money against cash flows from completed, leased properties, freeing capital for new projects.
The 36MW SV01 is fully operational, giving the financing a stabilized asset and contracted revenue to lean on. The bonds are designated green bonds under EdgeCore's Green Financing Framework, aligned with the International Capital Market Association's Green Bond Principles.
What they said: The deal is "a strong signal to the market that EdgeCore continues to deliver data center capacity with certainty despite industrywide delays related to power delivery, supply chain activities and capital deployment," said Julie Brewer, executive vice president of finance.
The signal: Data center ABS issuance is becoming an established financing channel, with recent CloudHQDealroom has a profile for this one. Try Dealroom → and US SignalDealroom has a profile for this one. Try Dealroom → deals showing more operators tapping securitization. EdgeCore's deal is notable because it refinances a built, leased asset rather than funding an unbuilt project—converting completed capacity into capital for further growth, not evidence that data center funding is broadly getting cheaper.
Read more: citybiz.co
Image credit: Generated with Gemini
