Creditflux CLO Symposium 2026

location_on The Chancery Rosewood, London Map
20 Apr

Data centre financing – Driving convergence

Panel Introductions and Market Overview

The moderator introduces the panel and provides context on data centre lending volumes in Europe. Panellists from RBC Real Estate Capital Partners, Conduit Real Estate Finance, Tristan Capital Partners, and Pure Data Centres introduce themselves and their roles in the data centre finance ecosystem.

Types of Data Centres and Their Functions

Jim Perrie explains the different categories of data centres operating in Europe, including large language model training facilities, GPU-as-a-service farms, and traditional cloud data centres. He outlines how each type differs in location, power requirements, contract structures, and financing implications, noting that Europe is approximately 18 months behind the US.

Real Estate Investors Enter the Data Centre Space

Andrea Pittaluga discusses Tristan Capital Partners' approach to data centre investment, emphasising the importance of partnering with experienced operators and careful underwriting. The conversation covers how data centre returns compare favourably to traditional real estate and how the financing landscape — including credit funds, investment banks, and commercial banks — is becoming increasingly receptive.

Capital Flows, Securitisation, and the US-Europe Financing Gap

Jonathan Jay presents data on the scale of global data centre investment, highlighting the stark contrast between US and European securitisation volumes. He explains how Solvency II regulations restrict European insurers from holding securitised products, creating a structural financing bottleneck in Europe. The discussion also covers deal size challenges and the classification of data centres across infrastructure and real estate teams.

How Lenders Classify and Underwrite Data Centres

The panel explores how banks and borrowers navigate the classification of data centres between real estate and infrastructure lending teams. Jim Perrie explains the tension between the long development phase and the subsequent stable income stream, while Andrea Pittaluga shares how borrowers identify the most advantageous lending approach. The discussion highlights the evolving comfort level of European lenders with the asset class.

Obsolescence Risk and What Lenders Actually Finance

Tom Johnson and Jim Perrie examine the risk of technological obsolescence in data centres, distinguishing between core cloud locations and remote AI training facilities. The discussion covers how lenders approach residual value, what assets are included in financing (shell, cooling, power equipment versus tenant fit-out), and how pricing expectations differ between LLM and cloud sites.

Winners and Losers in the Data Centre Investment Race

The panel debates the risk of a data centre bubble, drawing analogies to the shopping centre boom. Jonathan Jay reframes the opportunity by highlighting the value in ancillary businesses surrounding data centres — from cooling technology to logistics — and argues that the physical infrastructure has not kept pace with AI advancement. Andrea Pittaluga explains Tristan's disciplined deal selection process and location criteria.

Energy Constraints, ESG, and the Green Data Centre Challenge

The panel addresses the environmental impact of data centres, including energy and water usage, regulatory pressure on power usage ratios, and the challenge of obtaining grid connections in constrained markets like Amsterdam and Dublin. Jim Perrie describes Pure Data Centres' approach to self-generation using biofuels, while Tom Johnson explains how ESG factors are embedded in RBC's underwriting process. Andrea Pittaluga outlines how new-build data centres can be designed for maximum sustainability.

Style Drift, Systemic Risk, and Data Sovereignty

Audience members raise questions about style drift and systemic risk as data centres are financed across multiple structures including CMBS, project finance, and infrastructure CLOs. Jonathan Jay explains how financing type depends on where an asset sits on the development-to-stabilisation continuum. The panel then discusses data sovereignty, with Jim Perrie and Tom Johnson examining the realistic limits of European data independence and how data localisation trends are supporting secondary market growth.

Tenant Concentration Risk and Hyperscaler Credit Quality

An audience member asks how lenders manage concentration risk when major hyperscalers such as Meta, Google, and Amazon dominate data centre tenancy. Tom Johnson explains that while single-tenant hyperscale deals carry concentration risk, the AAA credit ratings and strong balance sheets of these tenants make them desirable counterparties. He contrasts this with the more cautious approach required for sub-investment grade tenants, and the panel closes with final remarks.