This Is What It Takes to Get a Data Center Financed

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview Travis Wofford, a partner at Baker Botts, about the complexities of data center finance. They discuss the various financing structures used in data center projects, including ABS, CMBS, private credit, and public-private partnerships. The conversation covers the risks associated with data center investments, such as tenant quality, lease terms, technology obsolescence, power availability, and regulatory hurdles. They also explore the impact of public sentiment and political factors on data center development, as well as the potential for government loan guarantees to lower the cost of capital.