Aligned Data Centers raises $1.1 billion in financing, expanding capital for hyperscale AI data center construction.

Aligned Data Centers will raise $1.1 billion in asset-backed bonds backed by real property interests in four U.S. data centers located in Illinois, Texas, and Virginia. This represents the company's first securitization of the year.

The transaction involves four tranches of A1, A2, and B notes with an anticipated maturity of five years and a legal maturity of 30 years, according to ratings analysts at S&P Global Ratings. Morgan Stanley serves as the sole structuring advisor for the deal, which is slated to close on July 27.

The securitization is structured as a master trust that will use its proceeds to repay all outstanding series of notes, and it will not share identical collateral with prior issuances. At closing, the transaction will benefit from a $36.9 million reserve account funded by the A-1-L/C tranche of notes.

The deal includes a cash trap trigger and a class A amortization trigger based on three-month debt service coverage ratio (DSCR) levels of 1.35x and 1.20x, respectively. Additionally, the transaction features a liquidity reserve sized to the greater of three months of note interest or 12 months of priority expenses and maintenance capital expenditures—exceeding the three months of interest coverage typical in comparable hyperscale data center securitizations rated by S&P.

Compared with Aligned's previous series 2032-2 issuance, three of the prior seven data centers will be removed from the trust, reducing the collateral pool's appraised value by approximately $1 billion.

The data centers are turnkey facilities where landlords own the critical mechanical and electrical infrastructure. Current tenants maintain high average credit quality, with 90.7% rated as investment-grade or equivalent. Leverage is moderate, with the assets constrained at a 70.0% loan-to-value (LTV) ratio.

S&P Global Ratings assigned ratings of A- to the A-1-L/C, A-1-V, and A-2-I tranches, and BBB to the class B notes.