Specialized capital for mission-critical data center facilities
Data centers have become essential infrastructure, driven by cloud computing, AI workloads, and the exponential growth in data consumption. George Smith Partners has experience financing data center transactions, from stabilized colocation facilities to ground-up hyperscale developments.
We understand the unique aspects of data center underwriting, including power capacity, redundancy requirements, tenant creditworthiness, and the critical nature of uptime guarantees. Our relationships include lenders with specific expertise in digital infrastructure financing.
Multi-tenant facilities where enterprises lease space, power, and cooling for their IT equipment.
Large-scale facilities built for cloud providers and major technology companies.
Single-tenant facilities built for specific corporate users.
Smaller facilities located close to end users to reduce latency.
Available and contracted power capacity in megawatts.
Redundancy levels and uptime guarantees (Tier I-IV).
Creditworthiness and lease term of anchor tenants.
Fiber connectivity and carrier-neutral access.
Lenders focus on power capacity and reliability in megawatts, tier classification and redundancy levels, tenant creditworthiness and lease terms, fiber connectivity, and the facility's location relative to major metro areas. The credit quality of anchor tenants and the length of contracted leases are especially critical to underwriting.
Data centers require significantly higher capital expenditure per square foot due to power infrastructure, cooling systems, and redundancy requirements. Lenders must evaluate specialized metrics like cost per megawatt, power usage effectiveness, and uptime guarantees that do not apply to conventional industrial or warehouse assets.
Capital is available for colocation facilities serving multiple tenants, hyperscale campuses built for major cloud providers, enterprise data centers for single corporate users, and edge facilities positioned close to end users. Both ground-up development and acquisition or refinancing of stabilized facilities can be financed.
Explosive growth in cloud computing, artificial intelligence workloads, streaming media, and enterprise digitization has driven unprecedented demand for data center capacity. This secular trend has attracted significant institutional capital and expanded the pool of lenders willing to finance data center development and acquisition.
Our team can help you secure financing for your data center investment.
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