Funding the Future: AI Data Center Financing at Scale
The demands of Artificial Intelligence (AI) and Machine Learning (ML) require a new class of financial partner. Traditional commercial real estate financing often falls short of the immense capital needed for utility upgrades, specialized construction, and the sheer scale of modern AI Data Centers.
Growth Funding Group specializes in structuring and delivering complex, nine-figure capital stacks that scale with your project’s vision, ranging into the hundreds of millions of dollars.
Our Approach to Large-Scale Data Center Capital
We recognize that AI Data Centers are not standard commercial properties; they are mission-critical technology infrastructure projects. As both a Direct Lender and a skilled Intermediary, we provide solutions designed for the full lifecycle of development: site acquisition, construction, power/utility expansion, and long-term stabilization.
- Massive Scale Construction & Development Loans
We structure financing that can handle the massive CapEx requirements of modern data centers, including shell construction and heavy electrical infrastructure (often $20M+ per megawatt of power).
- Customized Capital Stacks: We blend debt and equity through institutional partners, private credit funds, and family offices to ensure your project receives the complete funding required, without being limited by conventional bank constraints.
- Utility & Power Financing: A significant portion of AI Data Center costs involve securing and installing high-capacity power infrastructure. We specialize in structuring loans that specifically collateralize and fund the power demands of multi-megawatt campuses.
- High-Leverage and Non-Recourse Financing
For experienced sponsors and institutional developers, we offer financing options designed to optimize returns and protect personal assets.
- Commercial Second Position Debt: We utilize second-position debt to provide additional leverage, allowing sponsors to minimize their equity contribution and boost their internal rate of return (IRR).
- Non-Recourse Options: For established, stable projects or those backed by strong sponsorship, we can arrange non-recourse financing, mitigating personal liability while maximizing project scope.
- Specialty Debt: Collateralizing Contracts and EBITDA
The true value of an AI Data Center lies in its tenancy and operational capacity. We structure lending around these key metrics:
- Contract Collateralization: We provide financing that uses long-term, investment-grade leases and colocation contracts (often with major cloud providers or tech firms) as primary collateral. This allows for higher leverage and more favorable terms than standard real estate loans.
- EBITDA-Based Term Loans: For operating data centers with established revenue streams, we offer term loans structured against the center’s strong EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), providing flexible capital for expansion or recapitalization without restrictive covenants.
Ready to Scale Your AI Infrastructure?
If your vision for a data center project exceeds the capacity of traditional finance, the Growth Funding Group is your solution. We deliver the sophisticated, high-limit capital needed to build the foundation for the future of AI. Contact us today to discuss funding your next multi-megawatt campus.
