Compass Datacenters is seeking to secure new asset-backed securities (ABS) funding.

ABS is a type of financial investment that is collateralized by an underlying pool of assets – in this case, data centers.

Moody's Ratings has assigned provisional ratings to Compass Datacenters’ latest secured data center revenue term notes.

The anticipated repayment date for the 2026-1 notes will be in February 2031, and the legal final maturity date will be in February 2056.

The underlying assets will consist of six data centers and the related tenant leases owned by Compass.

The assets comprise six newly developed, turnkey data centers located in Phoenix, Arizona, and Toronto, Ontario, with a combined capacity of approximately 198.2MW and approximately 819,000 square feet (76,088 sqm) of space.

All the sites are 100 percent leased to four “investment-grade hyperscale tenants,” though details weren’t shared. They generate $219.6 million in annualized base rent (ABR). The top three tenants account for about 49 percent, 36 percent, and 11 percent of the ABR and have 14.1, 14.8, and 7.8 years left on their leases, respectively.

The five PHX data centers (PHX1A, PHX1B, PHX1C, PHX1D, and PHX1E) total 174.2MW and were constructed between 2023 and 2025. They were purpose built for its single tenants, except for PHX 1A, which is leased to two tenants.

Constructed in 2021, YYZ II is a 24MW data center in Toronto leased to a single high-credit-quality tenant.

Founded in 2011 in Dallas, Compass is backed by Brookfield Infrastructure Partners and Ontario Teachers' Pension Plan Board. Compass has 16 data center sites it is developing or operating across the US, Europe, and Israel.

The company was acquired by Brookfield and Ontario Teachers' Pension Plan from RedBird Capital Partners and the Azrieli Group in June 2023 for $5.5bn. The firm sold its prefab data center unit last year. KKR also recently invested in a portion of its operating data centers and future assets.

The company secured hundreds of millions of dollars in ABS funding last year.