Infrastructure CLOs gain ground

American Banker’s Asset Securitization Report said on May 18 that infrastructure collateralized loan obligations are gaining ground as investors look for ways to finance new data-center campuses and other digital infrastructure assets. The report said demand for new data centers is accounting for the surge in financing and is giving investors portfolio diversity. The development adds structured-credit capital to a market already shaped by heavy spending on AI-linked compute, power and connectivity. It also places data-center buildouts more directly inside the machinery of securitized finance. ### Why are data centers showing up in CLO-style financing now? CBRE said in its 2026 U.S. real estate outlook that data-center demand is reaching record levels, with power cost and delivery speed overtaking connectivity as the main site-selection constraint. The firm said users now prioritize securing 300-megawatt-plus power deliveries within 36 months, a sign of the scale and urgency behind current campus development. Asset Securitization Report said those conditions are feeding infrastructure CLO growth because new campuses need large pools of capital and can offer investors exposure to assets tied to long-term digital demand. The publication framed the market as one where compute real estate is being financed through asset-backed models rather than only through traditional bank loans or equity. ### What exactly are investors buying exposure to? (cbre.com) John S. Hintze wrote in Asset Securitization Report that infrastructure CLOs are being supported by financing tied to new data-center development. The article said the deals offer portfolio diversity, indicating that investors are treating digital infrastructure as a separate source of collateral and cash flow inside structured-credit portfolios. KBRA said in a May 2025 research note that data centers require large amounts of capital for construction, expansion and operations, and compared how ABS and CMBS structures can be used for the sector. (asreport.americanbanker.com) Morningstar DBRS said in a 2025 conference takeaway that data centers are still a relatively new asset type in securitization and remain subject to debate over whether they fit better in commercial real estate or asset-backed frameworks. ### Why does this matter beyond Wall Street deal desks? (asreport.americanbanker.com) S&P Global Market Intelligence reported in February that banks are meeting data-center demand with billions in credit facilities and bonds, citing examples including Project Jupiter, a hyperscale campus in Doña Ana County, New Mexico. The report said the average disclosed deal amount in 2025 was $1.2 billion, though the median was $40 million, showing how a few very large financings are shaping the market. (kbra.com) Colliers said in March that AI-driven demand is pushing the data-center business into a phase defined by power scarcity, rising capital intensity and infrastructure-scale execution. That means financing structures matter not only to lenders and investors, but also to operators deciding whether to build, lease, refinance or stage capacity in phases. ### Where does this leave corporate buyers of compute and capacity? (spglobal.com) Asset Securitization Report said the rise of infrastructure CLOs links infrastructure scarcity more closely to finance, making compute and connectivity part of structured-credit investment strategies. That can pull procurement, lease terms and project timing into closer view for investors and lenders funding the assets. Legal & General said in a March 2026 note on securitized credit financing for data centers that the sector can offer investors exposure to digital infrastructure, but requires sector expertise, disciplined underwriting and stress testing. (colliers.com) Fitch Ratings said in its December 2025 global outlook that rent growth and revenue strength should continue in 2026, driven by strong demand and low tenant churn. (asreport.americanbanker.com) ### What should readers watch next? Asset Securitization Report’s next coverage will show whether infrastructure CLO issuance broadens beyond data-center-heavy collateral pools and whether spreads, structures and investor demand hold up across additional deals. Fitch has also been tracking wider CLO market conditions, including April spread widening in broadly syndicated loan and middle-market CLOs, a backdrop that could shape how new infrastructure transactions are priced. (asreport.americanbanker.com) (am.landg.us.com)