Brookfield's Compass To Securitize 6 Big Tech Data Centers, Raise $830M
Compass Datacenters plans to raise $830M by securitizing a portfolio of hyperscale data centers in the U.S. and Canada.
The Brookfield-owned hyperscale developer is planning to issue asset-backed securities backed by six new, fully leased data centers in Phoenix and Toronto, according to a presale report from Moody’s Ratings.
With an appraised value of $3.6B, the portfolio has a combined capacity of 198.2 megawatts and totals close to 819K SF.
All of the facilities are 100% leased on long-term contracts to four firms that Moody’s describes as “investment-grade hyperscale tenants” — a characterization typically used to refer to tech giants like Amazon, Microsoft, Google and Meta.
Dallas-based Compass is among the most experienced developers focused on delivering facilities for the hyperscale sector, with a management team that has collectively built more than $15B in data center inventory globally, according to Moody's.
Brookfield’s infrastructure investment subsidiary partnered with the Ontario Teachers' Pension Plan to acquire Compass from RedBird Capital and Azrieli Group in 2023. Compass has subsequently been central to Brookfield’s aggressive push into the data center sector.
Among Compass' ongoing projects are a 333-acre campus in Statesville, North Carolina, that was proposed in August and a $10B Mississippi megacampus that broke ground last year. The company is also one of the developers hoping to build in the contentious Prince William Digital Gateway development zone in Northern Virginia.
At the heart of Compass’ planned ABS issuance are five data centers on a single campus in Phoenix, one of the fastest-growing data center markets, with a vacancy rate of less than 2%, according to Moody’s.
Accounting for nearly 90% of the asset value backing the bond issuance, the facilities were all built between 2023 and 2025 and total 174.2 MW of capacity. Four of the data centers are occupied by the single tenants they were built for, while the fifth is leased to two occupants.
A 24 MW Toronto facility built in 2023 for its single Big Tech tenant is also included in the portfolio slated for securitization.
According to Moody’s, Compass’ planned securitization is the first hyperscale ABS offering it has given a AAA or AA rating — the highest ratings the agency assigns to securitized debt, indicating a minimal risk of default.
Compass has been turning to several different mechanisms to capitalize its stabilized facilities. In December, KKR invested in a portion of Compass’ portfolio of operational data centers in a deal that raised “several billion dollars,” according to Bloomberg.
Compass has also been a frequent issuer of ABS and other structured debt over the past two years. Last year, it was reportedly preparing to raise $326M through securities backed by five properties. It was the fourth such debt issuance from Compass.
The company’s use of structured debt comes amid a flood of data center-backed securities offerings, which in just four years have gone from obscurity to a primary tool through which data center development is financed.
The sector's ABS issuance volumes have roughly doubled every year since 2020, according to JLL. The brokerage expects this trend to accelerate in 2026, with issuances of structured debt tied to data centers potentially reaching $50B.
