Data center firm CloudHQ is seeking to raise more than a billion dollars via its first securitization funding.

The company is seeking $1.4 billion in asset-backed securities (ABS), secured against two leased data centers in Virginia.

ABS is a type of financial investment that is collateralized by an underlying pool of assets – in this case, data centers. Per a Moody’s pre-sale report, the two turnkey data centers (LC1A and LC2) are located in Ashburn, Loudoun County, with a combined capacity of 160MW across 403,410 sq ft (37,480 sqm) of raised floor space.

Located at the same campus on the corner of Waxpool Road and Loudoun County Parkway, the two facilities are leased on a triple net (NNN) basis to two unnamed “investment grade” hyperscale tenants, each with around 14 years remaining on the lease.

The issuances – via CloudHQ affiliates Iskandar Enterprise LLC and Kaveh Enterprise LLC – have an anticipated repayment date of April 2031 and a final maturation of April 2056.

Moody’s notes that this is CloudHQ’s first ABS issue, but expects it to be a regular issuer. Cloud Capital, CloudHQ’s sister company, has done one ABS transaction.

Tenant 1 – an Aaa-rated company – is leasing 88MW and has 15 years left on a 17.5-year lease. Tenant 2 is leasing 72MW and has 13.4 years left on a 19.8-year lease.

Notably, there is an expected decrease in revenue during year 13, as the tenant in LC1A has a free rent period for the final 11 months of the initial contract.

CloudHQ has existing and planned data center developments across Virginia, Illinois, Minnesota, California, Texas, Mexico, Brazil, the UK, France, Germany, the Netherlands, Italy, Thailand, and Japan.

At full build-out, CloudHQ’s LC campus could total 14 buildings and 1.7GW of capacity. LC3 and LC4 are currently under construction.