Vantage Data Centers Achieves Industry Milestone with €640 Million Euro-Based Securitization of Data Center Assets
In a groundbreaking move for the data center industry, Vantage Data Centers, a global leader in hyperscale data center campuses, has successfully completed the first-ever euro-based securitization of data center assets in Continental Europe. The landmark transaction raised €640 million in securitized term notes, with an additional €80 million in unfunded Variable Funding Notes. This achievement underscores Vantage’s innovative approach to financing and solidifies its position as a trailblazer in digital infrastructure funding.
The Class A-2 Notes received an A- rating, while the Class B Notes were rated BBB-, both by Standard & Poor’s and Scope Ratings. This milestone follows Vantage’s earlier success last year, when it executed the first-ever EMEA data center Asset-Backed Securitization (ABS) in British pound sterling. With this latest transaction, Vantage continues to demonstrate its ability to unlock new funding mechanisms to fuel its rapid global expansion.
Refinancing for Growth and Sustainability
The proceeds from the securitization will be used to refinance four strategically located data centers in Germany—two in Offenbach, Frankfurt, and two in Berlin—all of which are fully leased to hyperscale customers. These facilities are critical to meeting the growing demand for AI, cloud computing, and other data-intensive applications. By refinancing these assets, Vantage aims to optimize its capital structure, reduce costs, and accelerate its time to market in response to mounting demand across the region.
Surplus funds from the transaction will be allocated toward capital expenditures and broader corporate initiatives, enabling Vantage to further expand its footprint in the EMEA (Europe, Middle East, and Africa) region. The notes have an anticipated five-year repayment period, providing Vantage with financial flexibility to support its long-term growth objectives.
A Testament to Innovation in Capital Markets
“The issuance of the first euro-denominated ABS in the data center sector marks a significant milestone in digital infrastructure financing,” said Rich Cosgray, Senior Vice President of Global Capital Markets at Vantage Data Centers. “Having previously pioneered the first data center ABS in both North America and EMEA (sterling-denominated), Vantage continues to showcase our innovative approach to capital markets and our ability to unlock new funding vehicles to fuel our global expansion.”
Vantage’s ability to execute complex, first-of-their-kind transactions highlights its leadership in the data center industry. By leveraging cutting-edge financial strategies, the company is not only driving its own growth but also setting new standards for how digital infrastructure projects are funded globally.
Green Financing for a Sustainable Future
This transaction was led by Barclays and Deutsche Bank as Joint Lead Managers, with ING and Natixis also serving as Joint Lead Managers. ABN Amro, Banco De Sabadell, SMBC, and Societe Generale acted as Co-Managers. Barclays played a pivotal role as the Sole Structuring Advisor and Sole Green Structuring Advisor, ensuring the transaction achieved a Green Bond designation. This designation was validated through a Second-Party Opinion (SPO) from Morningstar Sustainalytics, underscoring Vantage’s commitment to sustainability.
The funds raised will contribute to advancing the United Nations Sustainable Development Goals (SDGs) and will support the development of next-generation sustainable solutions aimed at reducing Vantage’s environmental impact. Incremental green financing will drive continued, sustainable developments across the refinanced portfolio, aligning with Vantage’s broader mission to innovate responsibly and minimize its carbon footprint.
Why This Matters for the Industry
Data centers are the backbone of the digital economy, supporting everything from cloud services to artificial intelligence and big data analytics. However, their energy consumption and environmental impact have come under increasing scrutiny. By issuing the first euro-based ABS in the sector, Vantage has not only created a new funding model but also demonstrated how sustainability can be integrated into financial structures. This approach ensures that growth in the data center industry is both economically viable and environmentally responsible.
The inclusion of green financing elements in this transaction reflects a growing trend among companies to align their operations with global sustainability goals. For Vantage, this means investing in technologies and practices that reduce energy consumption, increase efficiency, and promote renewable energy usage. These efforts are critical as the demand for data center capacity continues to surge, driven by the proliferation of AI, IoT, and cloud computing.
Expanding Presence in the EMEA Region
The refinancing of the four German data centers is part of Vantage’s broader strategy to expand its presence in the EMEA region. Germany, with its robust digital infrastructure and strategic location within Europe, is a key market for Vantage. The country’s strong demand for hyperscale data center capacity makes it an ideal location for the company’s continued growth.
By leveraging innovative financing mechanisms like the euro-based ABS, Vantage can accelerate its expansion plans and bring new facilities online faster. This not only benefits the company but also supports the broader digital transformation occurring across Europe. As businesses increasingly rely on data-driven solutions, Vantage’s ability to deliver scalable, reliable, and sustainable data center capacity is more important than ever.
About Vantage Data Centers
Vantage Data Centers powers, cools, protects and connects the technology of the world’s well-known hyperscalers, cloud providers and large enterprises. Developing and operating across five continents in North America, EMEA and Asia Pacific, Vantage has evolved data center design in innovative ways to deliver dramatic gains in reliability, efficiency and sustainability in flexible environments that can scale as quickly as the market demands.
