I N F O G R A P H I C
EUROPE PRIMED FOR DATA CENTRE ABS FINANCING AS INVESTMENT SOARS
As the appetite for data centres increases across Europe and the sector matures , the region is becoming primed for the emergence of ABS in the sector .
Global investment in data centres reached US $ 36 billion last year , with US $ 22 billion invested in the first five months of 2024 , according to analysis by global law firm , Linklaters , signalling robust growth in support of the digital economy .
The analysis shows that 29 % of the US $ 22 billion was invested across Europe .
Asset-backed securitisations ( ABS ) are becoming an attractive option for financing these centres and , since 2018 , the US has seen over US $ 21 billion in ABS issuance .
As the appetite for data centres increases across Europe and the sector matures , the region is becoming primed for the emergence of ABS in the sector .
North America leads with significant investment , accounting for 62 % of the global total in 2023 and 69 % of investments up to April 2024 , equating to US $ 15 billion invested .
Europe ' s market share has jumped from 6 % in 2022 to 20 % in 2023 with over US $ 7 billion invested in European data centres so far in 2024 , giving Europe a 29 % market share and highlighting the continent ' s growing importance in the data centre market .
While North America continues to hold a significant portion of activity , Europe stands out as the only region to build a year-over-year increase in transaction volume in 2023 . versatility and appeal of the product in this sector .
Since 2018 , data centres across North America have seen issuance of over US $ 21 billion in asset-backed securities .
Europe stands out as the only region to build a year-over-year increase in transaction volume
This growth trajectory emphasises the sector ' s appetite for sustained development and the integral role that ABS financing will play at the appropriate phase in the lifecycle of these assets . �
As these centres reach income stabilisation , the transition to ABS offers a more cost-effective means to refinance existing bank debt , showcasing the
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