Vantage Data Centers has successfully raised €720 million (approximately $821 million) through the first-ever euro-denominated asset-backed securitization (ABS) backed by European data center infrastructure. The landmark transaction marks the creation of a new asset class for institutional investors across Europe and reflects surging demand for data center capacity amid the ongoing global AI and cloud computing boom.
The ABS deal is backed by four fully leased hyperscale data center facilities—two located in Berlin and two in Frankfurt—collectively offering approximately 55 megawatts of power capacity. These facilities were valued at over $1 billion earlier this year.
Pioneering Structure in the European Market
While ABS structures are well established in the U.S. for tech infrastructure financing, this is the first time such a structure has been used for European data center assets. Vantage utilized both the physical infrastructure and projected revenue streams from the long-term leased facilities as collateral for the bond issuance.
“We believe the ABS market is particularly well suited to our type of asset—real estate-centric, high-credit-quality tenants, and long-term leases,” said Sharif Metwalli, Chief Financial Officer of Vantage Data Centers, in an interview with CNBC.
The bonds were issued with an average coupon of 4.3%, considered attractive given the size and leverage of the deal.
High Investor Demand Despite Leverage
According to Rich Cosgray, Senior Vice President of Global Capital Markets at Vantage, the deal attracted significant investor interest and was “two and four times oversubscribed on the respective financings,” despite relatively high leverage levels.
“We had some investors that just weren’t comfortable at that leverage level,” Cosgray noted, “Yet we were able to tighten pricing meaningfully through the marketing process.”
Proceeds from the bond issuance will be used to repay construction loans associated with the development of the four German data center sites.
Broader Expansion Strategy
This transaction follows Vantage’s successful £600 million ABS deal in 2024 for its Cardiff campus in the United Kingdom. The company now operates or is developing approximately 2,500 megawatts of data center capacity across the EMEA region, supporting surging demand driven by AI applications, cloud adoption, and digital infrastructure requirements.
Barclays and Deutsche Bank served as joint lead arrangers for the transaction, while Clifford Chance provided legal counsel.
The successful execution of this deal not only diversifies Vantage’s funding sources but also sets a precedent for other data center operators seeking access to institutional capital markets in Europe.
