Data Center Construction Loans
Senior construction capital for hyperscale and wholesale colocation projects. We focus on power delivery, credible EPC, tenant pipeline, and a closing process that aligns funding milestones to utility and build schedules.
Outcome:
committed capital sized to real power and lease timelines, not wishful pro formas.
Markets & Project Types
Core Markets
NoVA (Ashburn)
, DFW, Phoenix/Mesa, Chicago/Elk Grove, Atlanta, Columbus, Salt Lake, Austin/San Antonio.
Use Cases
Hyperscale shells, turnkey halls, phased wholesale colo, expansions, brownfield conversions with new power.
Tenant Mix
LOIs from hyperscalers and cloud; wholesale pre-lets; retail only with credible cross-connect and MMR plans.
Indicative Loan Terms
| Item |
Guidance |
Notes |
| Loan Size |
USD 25m–500m+ |
Programmatic for phased campuses |
| LTC / Proceeds |
Up to 60–75% of cost |
Step draws tied to power + EPC milestones |
| Structure |
IO during build; mini-perm option |
Refi or term takeout at stabilization |
| Pricing |
SOFR + 350–650 bps |
Spread by lease cover, sponsor, market |
| Tenor |
24–48 months |
Extensions for utility slippage |
| Recourse |
Partial or carve-out |
Burn-off at lease or COD milestones |
| Fees |
~1.0%–1.5% origination |
Exits as negotiated |
Ranges are indicative and subject to underwriting.
What Underwriters Care About
Power & Interconnection
Queue position, utility LOAs, substation schedule, transformer lead times, N-1 design, backup fuel, PUE targets.
EPC & Budget
GMP or fixed-price, contingencies, vendor lists, MEP design, critical path, liquidated damages language.
Leasing & Revenues
LOIs/MSAs with hyperscalers or anchors, step-in rights, churn risk, cross-connect revenue, fiber providers.
Sponsor Capability
Delivered MW track record, operations bench, prior lender references, equity in first-loss.
Diligence Checklist
- Site control, zoning, environmental and permits
- Utility correspondence, interconnection queue and COD schedule
- EPC contract, MEP drawings, budget and contingency
- Tenant LOIs/MSAs, pricing schedules, and termination terms
- Fiber carrier list, MMR plans, network diagrams
- Insurance program and construction monitoring plan
- Sponsor financials, project org chart, resumes, references
Execution & Draw Mechanics
Draws track power and build progress: civil and foundations, steel and envelope, MEP rough-in, gensets/UPS, commissioning, COD. We align cash flow to utility milestones to avoid dead capital while the project waits on gear or grid.
Start Your Data Center Financing Request
Send the site pack, utility letters, EPC terms, and lease pipeline. We will outline proceeds, structure, and timing.
Contact Us
FAQs
- Do you require pre-leasing? Not always. Strong LOIs and proven sponsor delivery can clear.
- Will lenders fund ahead of power? Yes, with tight covenants and step-draws matched to utility timing.
- What kills deals? Sloppy EPC terms, shaky power timelines, and rent assumptions that do not match the tenant mix.
Financely is an advisory and placement firm. We are not a lender. Any financing is subject to lender underwriting, KYC/AML, and final documents. Terms vary by market, tenant quality, power risk, and sponsor track record.