Data Center & Digital Infrastructure Capital: $25M to $5B+
The data center sector consumed $92 billion in debt financing in 2025. The developers who move fastest are the ones with institutional capital relationships already in place — before the project is ready to close. PeerSense connects mid-market developers and sponsors with private credit funds, infrastructure lenders, and institutional capital partners who are actively deploying into digital infrastructure.
The Infrastructure Supercycle Is Real. The Capital Competition Is Intense.
Data center debt originated in 2025, more than double three years prior
New debt financing needed globally through 2030 (JLL)
Annual growth rate of the global data center sector through 2030
Power interconnection wait times in top US markets — the #1 risk factor lenders underwrite in 2026
The four largest hyperscalers are projected to spend nearly $700 billion on AI infrastructure in 2026 alone — and even they are moving to debt financing as capital expenditure exceeds free cash flow. Below the hyperscale level, the opportunity is even clearer: mid-market developers and colocation operators building $25M–$500M projects are competing for the same institutional capital, but without the same direct access to the banks and credit funds deploying it.
That access gap is what PeerSense closes.
How Data Center Projects Get Financed
Senior Construction + Term Debt
The foundation of any project finance structure. A special purpose vehicle (SPV) is formed for the project; debt is made to the SPV with limited recourse to the sponsor beyond agreed equity contribution and contingency support.
What lenders underwrite:
Anchor tenant creditworthiness and lease term length — long-term contracted revenue is the primary underwriting driver
Power secured — interconnection queue position and power delivery timeline is now the single most critical risk factor lenders assess in 2026
Developer track record — prior deliveries, construction management capability, operational experience
LTC ratios (typically 60–70% of total project cost for senior), DSCR covenants, and cost control milestones
Construction period: interest-only on draw schedule; term loan activates after Certificate of Occupancy
PeerSense connects projects with private credit funds, commercial banks, and institutional lenders with active digital infrastructure mandates.
Mezzanine Debt
Fills the gap between what senior lenders will fund and what the sponsor can contribute as equity. Subordinated to senior debt, priority over equity.
How it works:
Provided by private credit funds and infrastructure debt funds with higher risk tolerance than senior lenders
More flexible on structure and covenants than bank debt
Higher cost reflects the subordinated position — but cheaper than diluting equity at this stage
Typically structured with interest-only periods aligned to construction and lease-up timeline
Mezzanine providers increasingly require DSCR support from senior borrowing base metrics
JV Equity / Preferred Equity
For larger projects or platforms building pipeline at scale. A joint venture equity partner provides capital in exchange for a structured ownership position — not control, unless specified.
How it works:
Structured JV agreement: waterfall provisions (how profits distribute after debt service), governance rights, board representation, drag-along and tag-along protections
Capital sources: infrastructure funds, family offices, institutional investors with long-duration mandates
Preferred equity sits above common equity in the waterfall — sponsor retains operational control
PeerSense facilitates introductions to licensed institutional advisors who execute JV equity and preferred equity transactions at this level.
Typical Capital Stack Proportions
What Gets a Deal Funded in 2026
This section is current market intelligence — not generic advice.
Strong Position
Power secured — site has confirmed interconnection capacity or a signed utility agreement
Anchor tenant in place — creditworthy offtake agreement or LOI from a named colocation customer
Experienced team — developer has prior deliveries in comparable asset types
Defined capital stack — sponsor equity committed, senior debt structure outlined
Site controlled — land or long-term ground lease in place
Construction timeline realistic — phased delivery plan with credible cost estimates
Kills the Deal
Power not secured — projects without confirmed power access are increasingly unfundable regardless of other merits
Fully speculative build with no anchor tenant or pre-leasing in a tightening market
Inexperienced developer team with no comparable deliveries
Vague capital stack — equity not committed, senior debt not structured
Multiple conflicting advisor processes running simultaneously
2026 Market Note
Power availability has moved from a site selection consideration to a primary credit underwriting factor. Lenders are now treating interconnection queue position as a deal-defining variable — not a footnote. Projects without a clear power delivery path are facing significantly longer capital raise timelines regardless of tenant demand.
Who This Is For
Right Fit
- Mid-market to large-scale data center developers and sponsors: $25M–$5B+ projects
- Colocation operators expanding capacity with secured tenant demand
- Infrastructure platforms building a development pipeline and needing programmatic capital
- Developers with site control, power progress, and anchor tenant interest who need the institutional capital relationship to close the capital stack
- Sponsors who have outgrown what community banks and regional lenders can do — and need private credit, infrastructure funds, or institutional lenders deploying at scale
Not the Right Conversation
- Pre-development projects with no site control or power progress
- Spec builds with no tenant interest in a tightening leasing environment
- Projects below $25M (different capital sources apply — see Bridge Loans and Private Credit)
- Hyperscale operators already working directly with bulge bracket banks and credit funds on deals above $5B+
From Introduction to Close
PeerSense connects data center developers with institutional capital sources through a direct, prepared process — no blind referrals, no wasted time.
Deal Review
Ed reviews the project directly. Site, power status, tenant position, current capital stack, sponsor track record, timeline. If the deal has institutional capital merit, he says so immediately. If it doesn't, he says that too — no wasted time on either side.
Capital Source Matching
PeerSense identifies which capital source in the institutional network fits the specific deal profile — by size, structure, stage, and timeline. Private credit fund. Infrastructure debt fund. Family office JV partner. The introduction is direct and prepared — not a blind referral.
Introduction and Process
PeerSense facilitates a direct introduction to the capital source. For transactions at this level, introductions are made to licensed institutional advisors who execute the formal capital process — mandate, CIM, investor outreach, term sheet, close. PeerSense is compensated on success at close.
Fee Structure
PeerSense earns a referral fee at closing. Nothing collected before the deal closes. No retainers, no upfront fees.
Tell Us About Your Project
Direct with Ed. If the project has institutional capital merit, he'll tell you after the first conversation. If it doesn't, he'll tell you that too.
Frequently Asked Questions
Common questions about data center financing and how PeerSense works with developers and sponsors.
PeerSense is a commercial finance advisory firm. We facilitate introductions to licensed institutional advisors who execute capital transactions at this level. PeerSense is not a broker-dealer, does not offer or solicit securities, and does not make credit decisions. All financing is subject to deal structure and capital source approval. PeerSense earns a referral fee at closing from the capital source, sponsor, or both — nothing is collected prior to close.