WASHINGTON — July 29, 2026
Executive Summary
Cloud Capital has completed a $520 million asset-backed securities (ABS) issuance through its newly established ABS Master Trust, introducing a scalable financing platform for its Core Strategy. The transaction marks the first programmatic data center ABS Master Trust for a core joint venture and the first data center ABS issuance to receive AAA ratings from three independent rating agencies.
Announcement Overview
Cloud Capital announced the successful completion of a $520 million ABS issuance through its newly formed Cloud Capital ABS Master Trust, the firm’s second ABS Master Trust. The financing platform is designed to support the long-term expansion of its Core Joint Venture Strategy, backed by Realty Income and a leading global institutional investor. Secured by a stabilized 80 MW hyperscale data center in Northern Virginia, the transaction achieved AAA ratings from Fitch Ratings, Morningstar DBRS, and Kroll Bond Rating Agency, highlighting the strength of the underlying assets, financing structure, and contracted cash flows.
Key Announcement Details
- Announcement Type: Asset-Backed Securities (ABS) Issuance
- Announcing Entity: Cloud Capital
- Announcement Date: July 29, 2026
- Dateline: WASHINGTON
- Transaction Value: $520 million
- Transaction: ABS issuance through Cloud Capital ABS Master Trust
- Program Launch: Data center ABS Master Trust
- Trust: Cloud Capital’s second ABS Master Trust
- Structure: Single A-2-I tranche
- Credit Ratings: AAA from Fitch Ratings, Morningstar DBRS and Kroll Bond Rating Agency
- Industry Milestone: First data center ABS issuance with AAA ratings from three independent agencies
- Collateral: 80 MW stabilized hyperscale data center
- Asset Location: Northern Virginia
- Tenant: Investment-grade hyperscale customer
- Lease: Long-term lease
- Core Strategy Backing: Realty Income and a leading global institutional investor
- Use of Proceeds: Support Core Strategy growth and future expansion
- Lead Advisor: Guggenheim Securities, LLC
- Passive Bookrunners: Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
- Company Focus: Data center investment management
New ABS Master Trust Supports Core Strategy Expansion
Cloud Capital stated that the newly established ABS Master Trust has been created as a repeatable financing platform for its stabilized Core Joint Venture Strategy. According to the company, the structure is intended to provide long-term scalability while supporting future capital deployment across its institutional digital infrastructure portfolio.
The company noted that the Core Strategy is backed by:
- Realty Income
- A leading global institutional investor
Cloud Capital also said the transaction represents:
- The industry’s first programmatic data center ABS Master Trust established for a core joint venture.
- The second ABS Master Trust managed by Cloud Capital.
Triple-A Ratings Achieved Across Three Independent Agencies
The issuance is described as the first data center ABS transaction to receive AAA ratings from three independent credit rating agencies.
The transaction was:
- Structured as a single A-2-I tranche
- Rated AAA by Fitch Ratings
- Rated AAA by Morningstar DBRS
- Rated AAA by Kroll Bond Rating Agency
According to the announcement, the ratings reflect:
- Quality of the underlying assets
- Conservative capital structure
- Long-term contracted cash flows
Asset Portfolio Securing the Issuance
The ABS issuance is secured by an operational hyperscale data center asset.
The secured property consists of:
- An 80 MW stabilized hyperscale data center
- Located in Northern Virginia
- Leased to an investment-grade hyperscale customer
- Supported by a long-term lease
- Serving durable, mission-critical workloads
Cloud Capital stated that these characteristics support the long-term credit profile of the transaction.
Leadership Commentary
Hossein Fateh, Founder and Chief Executive Officer of Cloud Capital, said:
“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.”
He added:
“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.”
Fateh further stated:
“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.”
Institutional Investor Demand
Cloud Capital reported strong participation from institutional investors despite prevailing market conditions.
Jason Weaver, Executive Vice President and Head of Capital Markets at Cloud Capital, said:
“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.”
He also 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.”
Weaver concluded:
“We are grateful to our financial advisors and investors for their continued support as we grow our platform.”
Market Perspective
Matt Bissonette, Senior Managing Director of Guggenheim Securities, LLC, said:
“Cloud Capital has established a new benchmark for institutional financing in the digital infrastructure sector.”
He added:
“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.”
Bissonette further stated:
“This transaction demonstrates both the continued maturation of the data center ABS market and the growing demand for high-quality digital infrastructure credit.”
Use of Proceeds
According to Cloud Capital, net proceeds from the issuance will be used to:
- Support continued growth of the company’s Core Strategy
- Increase financial flexibility
- Capitalize on growing global demand for hyperscale digital infrastructure
Transaction Advisors
The financing transaction included multiple financial institutions.
Lead advisor
- Guggenheim Securities, LLC – Sole Structuring Advisor and Sole Active Bookrunning Manager
Passive Bookrunners
- Deutsche Bank Securities Inc.
- Morgan Stanley & Co. LLC
About Cloud Capital
Cloud Capital is a global investment management firm specializing in the acquisition, operation and management of data center assets. Since 2020, the firm has acquired a portfolio of 30 data center assets worldwide with a value exceeding $12 billion. The company applies a disciplined underwriting approach to proprietary and off-market transactions while actively managing its digital infrastructure portfolio. Cloud Capital maintains offices in Washington, D.C., San Francisco, California, and London.
Media Contact
For additional information, visit cloudcapital.com.
Source Attribution
Source: Company announcement
