In Mergers & Acquisitions, Michael Lee and Chris Poggi Examine Recent Surge in Digital Infrastructure Financing

In a Mergers & Acquisitions article, finance partners Michael Lee and Chris Poggi discussed diverse financing sources for digital infrastructure and the growth in data center revenue securitization.

Michael says there is a good mix of financing sources that are funding digital infrastructure financing needs. “It’s a confluence of real estate financing, corporate financing, leverage financing, depending on the investors coming in, and project and construction financing.” He points out that the original loans to work on the buildouts have spurred refinancings that are more asset-backed.

Chris added that they’ve seen tremendous growth in data center revenue securitization through both 144A syndicated bond markets and private placements. “Once a data center is built out and scaled, with customer contracts in place, you can flip to the more efficient form of ABS debt and refinance your higher cost debt,” he explained.