Cloud Capital Closes $520 Million Triple-A Rated Data Center ABS With Guggenheim Securities, Morgan Stanley
WASHINGTON, D.C. — July 29, 2026 — Cloud Capital has closed a $520 million asset-backed securities issuance through its newly established Cloud Capital ABS Master Trust, marking what the firm describes as the first data center ABS transaction to receive triple-A ratings from three independent rating agencies. Guggenheim Partners served as sole structuring advisor and sole active bookrunning manager, while Deutsche Bank Securities Inc. and Morgan Stanley acted as passive bookrunners.
Deal Structure and Ratings
The transaction is structured as a single A-2-I tranche and carries AAA ratings from Fitch Ratings, Morningstar DBRS, and Kroll Bond Rating Agency. Cloud Capital said the ratings reflect the quality of the underlying collateral, a conservative capital stack, and long-term contracted cash flows secured by the assets.
The issuance is secured by an 80 MW stabilized hyperscale data center in Northern Virginia, leased to an investment-grade hyperscale tenant under a long-term agreement tied to mission-critical workloads. The facility is fully leased and sits in what is widely regarded as the largest data center market in the world by capacity.
The Cloud Capital ABS Master Trust is the firm's second ABS master trust platform. The programmatic structure is designed to allow Cloud Capital to add future stabilized data center assets into the same trust over time, issuing new tranches and tapping the ABS market with standardized documentation — a format intended to lower the firm's blended cost of capital and diversify its funding sources over time.
Core Joint Venture Strategy
The proceeds support Cloud Capital's Core Joint Venture Strategy, which is backed by Realty Income Corp and a second global institutional investor that was not identified by name. The Core Strategy is oriented around stabilized, long-duration income assets rather than development-stage projects, and the ABS structure is specifically designed to serve as a repeatable financing vehicle for that portfolio as it grows.
"The launch of our ABS Master Trust represents another defining milestone in Cloud Capital's evolution as a leading institutional investment platform for digital infrastructure," said Hossein Fateh, Founder and Chief Executive Officer of Cloud Capital. "We have established a scalable source of long-term capital that will support the continued growth of our Core Strategy while enhancing value for our institutional investors. Achieving Triple-A ratings from three independent agencies reflects the exceptional quality of our assets, disciplined underwriting, and long-standing relationships with investment-grade hyperscale customers."
Jason Weaver, Executive Vice President and Head of Capital Markets at Cloud Capital, noted that the transaction drew broad institutional demand despite difficult market conditions. "Despite challenging market conditions, this transaction received significant demand from a broad and diversified institutional investor group and matched the tightest spread for a data center ABS transaction since the onset of the conflict in the Middle East in 2026," Weaver said. "Beyond the successful execution of this issuance, these facilities establish a repeatable financing platform that expands our access to institutional capital, diversifies our funding sources, enhances capital efficiency and positions Cloud Capital to finance future growth at an increasingly competitive cost of capital."
Guggenheim Securities on Market Maturity
Matt Bissonette, Senior Managing Director of Guggenheim Securities, LLC, said the transaction sets a new standard for institutional financing in the digital infrastructure sector. "Cloud Capital has established a new benchmark for institutional financing in the digital infrastructure sector," Bissonette said. "The combination of premier stabilized assets, long-duration investment-grade tenancy, conservative down-the-fairway structuring and an innovative Master Trust framework generated exceptional demand across a broad spectrum of institutional investors. This transaction demonstrates both the continued maturation of the data center ABS market and the growing demand for high-quality digital infrastructure credit."
The deal's pricing — matching the tightest spread for a data center ABS since the onset of the Middle East conflict in 2026 — signals that investors are treating high-quality digital infrastructure credit as a distinct and resilient asset class within commercial real estate capital markets, even as broader credit conditions remain under pressure from elevated interest rates and geopolitical uncertainty.
Cloud Capital Platform and Market Context
Cloud Capital has acquired 30 data center assets globally since 2020, with a portfolio valued at over $12 billion. The firm maintains offices in Washington, D.C., San Francisco, and London. Its Core Strategy is built around stabilized, investment-grade-tenanted facilities with long-term leases — a profile that aligns closely with the underwriting criteria rating agencies apply to highly rated ABS backed by real estate cash flows.
The Northern Virginia market, centered on the Ashburn and Loudoun County corridor, has long served as the primary hub for hyperscale data center demand in the United States, driven by the continued migration of enterprise and commercial workloads to cloud infrastructure. Cloud Capital's ABS structure is designed to capture that demand through a programmatic financing vehicle that can scale as the firm adds stabilized assets to its Core portfolio.
Net proceeds from the transaction will be used to support the continued growth of Cloud Capital's Core Strategy and to provide additional flexibility to pursue hyperscale digital infrastructure opportunities globally, the firm said.