Chart: Data centers funded via SPV structures keep hyperscaler debt off balance sheet
SumitGup · x · 2026-10-26
Illiquid Insights breaks down the typical data center financing structure: an SPV holds the real estate and power assets, with equity investors contributing 20% and debt investors (private credit and bond markets) 80%, while hyperscalers lease the facilities, guarantee residual value, and often hold some equity.
The practical effect is that Big Tech keeps much of the AI buildout's debt off balance sheet, fueling concern about the sector's true leverage.
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