Compass Datacenters raises $413M in asset-backed bonds

What's the deal? Compass Datacenters has raised $413 million in new bonds backed by seven completed, operational data centers. The notes priced in three tranches: Class A-2-I at $295 million, Class A-2-II at $68 million, and Class A-2-III at $50 million.

How big is it? The debt round ranks in the 96th percentile among all US hardware debt rounds tracked, based on 1,177 comparable deals. That places it near the top of the sector's financing activity.

The ratings picture: S&P Global RatingsDealroom has a profile for this one. Try Dealroom → published a preliminary report in July 2026, assigning an A rating to the Class A-2-III tranche — the only tranche it rated. The grade rested on a debt service coverage ratio of 1.69x at closing, plus the projected performance of the lease portfolio and the real estate value of the data centers.

S&P also cited initial liquidity reserve facilities of $28.3 million, $5.2 million, and $18.5 million, and credited the manager's and servicer's experience along with the transaction's structure.

Who's behind it? Founded in 2011, Compass runs around 16 data center sites in operation or under development across the US, Europe, and Israel. Brookfield Infrastructure PartnersDealroom has a profile for this one. Try Dealroom → and Ontario Teachers' Pension PlanDealroom has a profile for this one. Try Dealroom → acquired the company in June 2023 for $5.5 billion.

What could go wrong? Compass has faced controversy over approvals to build a data center in Ellis County, Texas — a reminder that local opposition can slow the buildout these bonds are meant to fund.

The signal: Data center operators are increasingly turning to asset-backed securitisation to finance the AI-driven infrastructure boom. By pledging completed, revenue-generating facilities, firms like Compass can raise investment-grade debt without diluting equity — a template likely to spread as the sector races to add capacity.

Read more: Data Center Dynamics