Data center firm Serverfarm is looking to secure new ABS funding, hoping to raise $589 million.

S&PGlobal reports the company is seeking to raise funds secured against four US data centers with 50MW of leased capacity and an aggregate appraised value of approximately $808 million.

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

The facilities are located in Atlanta (ATL1, 12MW), Chicago (CHI1, 20.9MW), and Los Angeles (LAX1, 16.8MW).

S&P noted more than 94 percent of tenants in the portfolio are investment grade, with a weighted average remaining term of seven years on the leases.

Bloomberg reports, however, that banks led by Morgan Stanley pushed back a key deadline to give investors more time to evaluate the bonds due to concerns over ties to Chinese technology giant Alibaba, which is a customer of the company.

The FT last week reported that Alibaba provides tech support for Chinese military “operations” against targets in the US, according to intelligence cited in a White House national security memo. Alibaba rejected the claims.

The deal has been extended by at least another week, and a new risk disclosure section has been added to bond documents, according to people familiar with the matter.

Morgan Stanley declined to comment to Bloomberg, while ServerFarm didn’t respond to requests for comment. A spokesperson for Alibaba told the publication that the Financial Times article was false.

“We question the motivation behind the anonymous leak,” the spokesperson said in an email, attributing the source to “a rogue voice looking to undermine President Trump’s recent trade deal with China.”

Serverfarm, founded in 2009 by real estate development firm Red Sea Group, was acquired by Manulife in 2023. The company operates 10 data centers across North America, Europe, and Israel, totaling more than 1.5 million gross sq ft (139,400 sqm) of data center space and 625MW of IT capacity.

On its website, Serverfarm lists facilities in operation in Amsterdam, Atlanta, Chicago, Houston, London, Los Angeles, Moses Lake, Tel Aviv, and Toronto.