In an increasingly interconnected world, making confident decisions can be challenging.
This is especially true for the data centers sector, where both opportunities and risks abound.
That's where Moody's Ratings comes in.
As a leading global provider of credit ratings, research, and risk analysis, we can help you navigate through turmoil and market volatility.
Demand for data center capacity to support artificial intelligence (AI), cloud computing and internet services will continue to rise sharply in 2026.
Pre-Sale – Compass' first hyperscale data center ABS issuance in 2026. Moody's Ratings has assigned provisional ratings to Compass Datacenters, LLC's (Compass).
Moody's Ratings (Moody's) has assigned provisional ratings to DataBank Holdings, Ltd.'s (DataBank).
Artificial intelligence (AI) continues to advance rapidly, with model performance making new breakthroughs and leading providers expanding deployment options for enterprises.
As the race to secure data center capacity intensifies, US data center developers and their big technology tenants are seeking to balance the desire for rapid delivery of new hyperscale data centers with cost-effective financing.
We use our generic project finance rating methodology to rate special purpose entities (SPEs) that are used to finance data centers on a non-recourse basis, whether under construction or already operational with contracted cash flow from long-term tenant leases.
Learn more about our first rating to a hyperscale data center-backed securitization by DataBank Holdings Ltd.
When we assess credit risks related to a data center financing, we consider certain characteristics of the financing to determine which rating methodology to apply in our analysis.
Data centers in Asia-Pacific (APAC) rely heavily on fossil fuels, given limited availability of low-carbon energy. They are also significant consumers of water, which is increasingly scarce in many parts of the region. While environmental considerations pose obstacles for data center development, the strategic importance of onshore data storage will drive growth and mitigate related credit risks.
Australian data centers are increasingly differentiated by their utility to hyperscaler clients, which are driving cloud offerings, social media and the adoption of artificial intelligence (AI). Large, operationally flexible data centers located within the hyperscalers' designated availability zones (AZs) are poised to benefit most because of their essentialness to the hyperscalers' business models.
Rising demand from artificial intelligence (AI) and the digital economy will drive growth in data centers in Japan (A1 stable), benefiting the value chain from electrical equipment and IT infrastructure to sectors such as real estate, power and data center operators. An increasing tax base from new business will drive revenue growth for regional and local governments (RLGs).
Chinese technology companies are raising investments in artificial intelligence (AI) and cloud infrastructure, boosting demand for data centers to meet future computing needs. Since DeepSeek introduced its low-cost, open-source large language models (LLMs) in January 2025, more open-source models have launched, accelerating AI adoption and development. This momentum is driving a new wave of data center construction across the country.
We expect data center power demand in Asia-Pacific (APAC) to grow at a 15%-20% compound annual growth rate (CAGR) over the next five to six years, as capacity more than doubles over the same period. This will require substantial investment by utilities in power generation, storage, and grid infrastructure, amid broader challenges of growth, decarbonization, and affordability.
Asia-Pacific is fueling the global data center (DC) boom and could host over 40% of capacity by 2030. Stronger emerging market growth fuels value-chain demand, bolstered by expanding financing options
Moody’s Ratings perspectives on data center finance and risk are regularly featured by leading global financial media. Our ratings and analysis help investors and market participants understand how fundamentals such as tenant credit quality, cash flow stability, leverage, and contract structure shape financing outcomes in a rapidly evolving, AI-driven landscape.
13 April 2026
Moody’s Ratings was referenced by both Bloomberg and Data Center Dynamics in reporting on a data center asset-backed securitization backed by hyperscale tenants.
11 February 2026
Moody’s Ratings was recently cited by Bloomberg for assigning a Aaa rating to a landmark data center asset-backed securitization backed by hyperscaler tenants.
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