Data centre development finance
Funding for colocation and hyperscale data-centre schemes across the UK.
Funding data centres development
Data centres are one of the fastest-growing commercial asset classes, driven by cloud computing, data sovereignty and the rapid expansion of artificial-intelligence workloads. They are capital-intensive, infrastructure-led developments, and lenders underwrite them on the fundamentals that make them work: secured power capacity, fibre connectivity, and the strength of the offtake, whether a hyperscale tenant pre-lease or a colocation operator's track record.
We arrange finance for colocation and hyperscale data-centre developments, structured around the power and connectivity position and the offtake agreements. Given the scale and specialism, funding often combines senior debt with mezzanine or institutional equity, and a pre-lease to a strong covenant is transformative for the terms available.
Scheme types we fund
- Hyperscale data-centre campuses
- Colocation and edge facilities
- Powered-shell developments
- Pre-leased and build-to-suit schemes
Indicative terms
- Loan sizeScheme dependent, often substantial
- Key testsPower, connectivity, offtake covenant
- StructureSenior plus mezzanine or institutional equity
- BoostHyperscale pre-lease or operator covenant
Indicative only. Terms vary by lender, scheme and borrower and are not an offer of finance.
How we fund a data centre scheme
Data centre development is funded on a structured combination of senior debt and mezzanine or institutional equity, sized against cost and the contracted offtake. A hyperscale pre-lease or a colocation operator's committed demand underpins the credit, because it contracts the income that services the debt. Lenders focus on secured power and connectivity as much as the building, and powered-shell schemes are funded on the certainty of the power position.
Lender appetite for data centres
A specialist and institutional field funds data centre development, including infrastructure debt funds and banks with digital-infrastructure teams. Appetite is strongest where power is secured, connectivity is proven and a hyperscale pre-lease or credible colocation demand contracts the income. Power availability and grid-connection timelines are the binding constraint and the first question a lender asks.
The exit
The exit is a long-term refinance onto infrastructure or investment debt once operational, or a sale to a data-centre platform or infrastructure investor. A contracted hyperscale lease or stabilised colocation income provides the long-dated cashflow these buyers and lenders seek.
Finance structures that suit this sector
- Senior development financeCore facility against cost and contracted offtake.
- Stretch senior financeHigher leverage where a pre-lease contracts income.
- Mezzanine financeCommon in the structure given the scale.
- JV equityInstitutional equity for hyperscale campuses.
Fund a data centres scheme
A view on fundability within one working day.
How a data centre scheme is appraised
Data centre value is infrastructure-led: it rests on secured power capacity, connectivity and the contracted offtake, whether a hyperscale pre-lease or colocation demand, capitalised at a digital-infrastructure yield. Lenders model value from the contracted income and treat power availability and grid-connection timelines as the binding constraint on the appraisal.
Indicative data centre finance terms
Data centre development is funded through a structured combination of senior debt and mezzanine or institutional equity, sized against cost and the contracted offtake. A hyperscale pre-lease transforms leverage and pricing; powered-shell schemes without a tenant are funded more conservatively, if at all.
Frequently asked questions
What do lenders need to see for a data centre?
Secured power capacity, fibre connectivity and a credible offtake, whether a hyperscale pre-lease or a colocation operator's track record. These fundamentals matter more than location in the conventional sense.
How are data centres typically funded?
Given the scale and specialism, usually through a structured combination of senior debt and mezzanine or institutional equity. A pre-lease to a strong covenant materially improves the leverage and terms available.
Why is power the first question lenders ask?
Because a data centre cannot operate without secured grid power, and connection timelines have become a major constraint. Lenders want certainty that the necessary power is secured or clearly deliverable before funding the build.
Can a powered-shell scheme be funded without a tenant?
Sometimes, where the power position is exceptionally strong and demand is evident, though at lower leverage. A pre-lease to a hyperscale or colocation covenant transforms the terms and is the strongest profile.
Funding a data centres scheme?
Tell us about your development and we will come back with a view on fundability and likely terms.