Cloud Capital has completed a $520 million asset-backed securities issuance through its newly established Cloud Capital ABS Master Trust, creating a scalable financing platform for its stabilized data center portfolio.
The transaction represents the second ABS Master Trust managed by Cloud Capital and the first programmatic data center ABS Master Trust established for a core joint venture.
Cloud Capital’s Core Joint Venture Strategy is backed by Realty Income and a major global institutional investor. The new structure is designed to provide repeatable access to long-term capital while supporting continued investment in hyperscale digital infrastructure.
The issuance is the first data center ABS transaction to receive AAA ratings from three independent rating agencies. Fitch Ratings, Morningstar DBRS and Kroll Bond Rating Agency each assigned the issuance their highest rating.
Structured as a single A-2-I tranche, the financing is supported by a conservative capital structure, long-term contracted revenue and stabilized infrastructure assets.
The securities are backed by an 80-megawatt hyperscale data center in Northern Virginia. The facility is leased to an investment-grade hyperscale customer under a long-term agreement supporting mission-critical workloads.
Cloud Capital said the transaction attracted strong demand from a broad group of institutional investors despite challenging market conditions. The issuance also matched the tightest spread achieved by a data center ABS transaction since the Middle East conflict began in 2026.
The net proceeds will support the continued expansion of Cloud Capital’s Core Strategy and provide additional flexibility to pursue opportunities created by increasing global demand for hyperscale data centers.
Since 2020, Cloud Capital has acquired 30 data center properties worldwide with a combined value exceeding $12 billion.
Support: Guggenheim Securities served as sole structuring advisor and sole active bookrunning manager. Deutsche Bank Securities and Morgan Stanley acted as passive bookrunners.
KEY QUOTES:
“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.”
“Achieving Triple-A ratings from three independent agencies reflects the exceptional quality of our assets, disciplined underwriting and long-standing relationships with investment-grade hyperscale customers.”
Hossein Fateh, Founder and CEO of Cloud Capital
“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.”
“Beyond the successful execution of this issuance, 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.”
Jason Weaver, Executive Vice President and Head of Capital Markets at Cloud Capital
“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.”
“This transaction demonstrates both the continued maturation of the data center ABS market and the growing demand for high-quality digital infrastructure credit.”
Matt Bissonette, Senior Managing Director at Guggenheim Securities
