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November 11.2025

2 Minutes Read

Will Serverfarm Secure Its $589 Million Loan to Expand Data Centers?

Serverfarm's Ambitious Financing Initiative

Serverfarm is looking to secure a substantial $589 million asset-backed securities (ABS) financing package, according to a recent presale report from S&P Global. This strategic move, expected to close by November 20, will bolster the company’s financial standing by utilizing three of its fully leased data centers located in Los Angeles, Chicago, and Atlanta.

Details of the Financial Package

The financing structure comprises a $543 million senior note and a $46 million loan, both scheduled for a five-year repayment with a 30-year maturity. The comprehensive appraisal values the three properties at $808 million, showcasing their robust investment potential. These data centers provide a total power capacity of 50 megawatts and are powered by market-equivalent in-place rents.

Recent Developments in the Data Center Sector

This financing deal reflects a broader trend in the data center market, which is experiencing revitalized investor interest. In 2023, the White House initiated the Stargate Initiative, leading to increased capital commitments within the sector. This year alone has seen a major deal involving Aligned Data Centers and significant ABS financing pursuits by companies like QTS Realty Trust for their project in Phoenix, further indicating a booming investment climate.

Expanding Horizons: The Road Ahead

Since acquiring majority interest in Serverfarm in 2023, Manulife Investment Management aims to fuel the company’s global expansion. With recent entries into the Texas market and additional campuses acquired, Serverfarm is strategically enhancing its colocation capabilities, aiming for a total expansion of 500 megawatts. As businesses increasingly pivot to cloud-based operations and advanced tech integrations, companies like Serverfarm stand at the forefront of this evolution.

Your Take on the Future of Data Centers

With Serverfarm and its recent refinancing move, data centers are becoming even more central to our modern economy, supporting the infrastructures that enable various technologies to thrive. As an investor or someone interested in commercial real estate, keeping an eye on trends like these can help shape informed decisions.

Commercial Real Estate Investment & Development

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Will Serverfarm Secure Its $589 Million Loan to Expand Data Centers?

Serverfarm's Ambitious Financing Initiative

Details of the Financial Package

Recent Developments in the Data Center Sector

Expanding Horizons: The Road Ahead

Your Take on the Future of Data Centers

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