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Chronicles

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Data center developers are seeking credit ratings even while facilities are under construction to unlock new capital; S&P, Moody's, and others expand coverage

Agencies are rushing to rate the debt of projects still under construction  —  Data centre developers are seeking credit ratings …

Financial Times Michelle Chan

Context & Ripple Effects

Data-center financing was already scaling rapidly: global data-center debt issuance nearly doubled in 2025, while banks were marketing more than $56 billion of investment-grade construction loans linked to future Oracle leases. Seeking ratings before completion extends that funding playbook to an earlier, riskier phase of development.

The move matters because it puts S&P, Moody's, and peer agencies closer to the point where construction, leasing, and financing assumptions must be translated into a debt-market assessment. It is a concrete step in turning data-center buildouts into standardized credit products rather than bespoke developer financings.

First-order effects

  • Developers can present a third-party credit assessment to prospective lenders and bond investors before a facility is operational, potentially widening their available capital sources during construction.
  • S&P, Moody's, and other agencies gain a larger role in data-center financing, with ratings work centered on projects' build, lease, and cash-flow assumptions.

Second-order effects

  • Investors and lenders get a common framework for comparing construction-stage projects, but ratings may also make differences in tenant quality, completion risk, and insurance more consequential to pricing and access.
  • Developers whose projects cannot satisfy rating-agency requirements may face a narrower buyer base, especially as some investors have already declined data-center debt lacking sufficient risk insurance.

Third-order effects

  • If pre-completion ratings become routine, more data-center construction debt could migrate toward repeatable public- and private-credit structures, reinforcing the financialization of AI infrastructure.
  • The market may increasingly separate projects with durable contracted revenue and credible risk controls from those dependent on unproven delivery assumptions; that would make credit analysis a stronger gatekeeper of expansion.

The trend: Data-center buildouts are moving toward institutionalized project finance, with credit ratings becoming a key bridge between construction risk and broader capital markets.

Discussion

  • r/wallstreetbets r on reddit
    Data centres seek credit ratings to unlock billions in funding for AI push
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