The SEC granted data centers an exemption from traditional securitization rules on July 29. The Division of Corporation Finance clarified that certain data center asset-backed securities do not fall under the definition of ABS under the 1934 Securities Exchange Act. Data center ABS and commercial mortgage-backed securities issuance exceeded $25 billion in 2025, surpassing the combined total of the previous three years. This decision applies specifically to structures where the issuer directly owns the data center and securities are repaid from net operating income. Operators such as Sabey, Compass, CyrusOne, and STACK Infrastructure will benefit from lower legal costs and faster execution, with the SEC making no mention of digital assets or crypto-related infrastructure.
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