Contracted Revenue Sale for Hyperscale Data Centers
Up to 89 percent of contracted lease value. 15 year lease signed or guaranteed by a hyperscaler. The contracted cash flows are sold. The owner keeps the facility and operating control.
Published: ·Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
What is a contracted revenue sale for a data center?
A data center owner can sell contracted lease revenue for up to 89 percent of contracted lease value when a 15 year lease is signed or guaranteed by a hyperscaler. It is a true sale of those cash flows. The owner keeps the facility. Ground up files fund in staged draws. Operating files fund at close.
, PeerSense Capital Advisory · September 7, 2026
How much of contracted lease value can a data center owner receive?
Up to 89 percent. That number is the live box, not a teaser. The final figure depends on tenant credit, lease term and structure, and is set in the term sheet. For an operating facility the purchase price funds at closing. For a ground up build it releases in stages as construction advances.
| Box | Live rule |
|---|---|
| Purchase price | Up to 89 percent of contracted lease value |
| Offtake | 15 year executed lease signed or guaranteed by a hyperscaler |
| Structure | True sale of contracted cash flows. Owner keeps the facility |
| Tenant | AWS, Azure, Google Cloud, Meta, Apple, Oracle Cloud, IBM Cloud, NVIDIA, or a wrap from one of them |
| Credit floor | BBB minus or Baa3 or better |
| Ground up | Staged draws through construction to completion |
| Operating facility | Purchase price funded at close |
| Path | 60 to 120 days from signed term sheet |
By Ed Freeman. Updated September 7, 2026. From the live desk box. Capital provider is not named on this page.
What is a 15 year take or pay hyperscale offtake?
The live box needs an executed lease or power agreement with a 15 year term covering the period being sold. In this market that offtake is often written as take or pay. The tenant pays for the contracted capacity whether or not it uses every megawatt. That is the cash flow being sold.
Public 2026 leases in this shape include Applied Digital 15 year take or pay hyperscale contracts printed in June 2026. Those are public comps so a sponsor can see the language the market is using. They are not a PeerSense tombstone and they do not name the capital provider on this desk.
Which tenants qualify for a contracted revenue sale?
Pricing follows tenant credit, not the developer. The tenant is Amazon Web Services, Microsoft Azure, Google Cloud, Meta, Apple, Oracle Cloud, IBM Cloud or NVIDIA. If it is not one of those, the lease needs a guaranty from one of them or a comparable investment grade parent. Floor is BBB minus or Baa3.
Letters of credit and reserves are reviewed case by case. A tenant that only just reaches investment grade or falls below it does not qualify alone.
Is a contracted revenue sale a loan?
No. The contracted revenues are sold. Proceeds are not balance sheet debt. Existing facilities and covenants stay intact. The owner keeps ownership and operating control of the facility.
That is the point of the structure. Construction debt, mezzanine and CMBS takeout live on a different page. If the file is a true sale of contracted hyperscale cash flows, this is the box. If the file is a loan against the building, start at data center construction and mezzanine.
How does funding move on a ground up data center?
- Financial close. Purchase agreement signed. Contracted revenues assigned to a dedicated bankruptcy remote entity. A controlled account opens. First funding for early costs such as site work, deposits and long lead equipment.
- Construction draws. Later funding against milestones such as site work complete, shell complete, power and cooling installed, and commissioning. An independent construction monitor checks budget and schedule. Funds move through a disbursement agent.
- Draw holdback. A portion of each draw sits until substantial completion, the same way a construction lender holds retainage.
- Completion. Tenant accepts the space. Rent commencement occurs. Final disbursement including holdback.
- Operations. Tenant pays into the controlled account. The waterfall pays the capital provider its purchased share and returns residual to the owner.
Same structure works on an operating facility with a contracted lease, funded at closing, and on a campus expansion backed by a new executed lease.
Revenue that can be sold
- Lease payments, colocation payments and hosting payments
- Contracted capacity payments and power cost reimbursements
- Interconnection fees and cross connect fees
- Contracted power payments where the owner supplies power under a long term agreement
Owning power with no contract to sell it creates nothing to sell. A utility contract where the owner only buys power is not a power agreement here.
Ground up ready
A file moves on the 60 to 120 day path when these are in hand.
- Land owned or under contract
- Zoning, entitlements and environmental clearances complete
- Building permits issued or at final approval
- Power secured with capacity committed to the site
- Water supply or water rights secured for cooling
- Executed hyperscale lease or power agreement
Share the executed lease, project stage and tenant credit.
PeerSense sources capital through a curated network of commercial lenders and capital sources. The desk introduces, positions and places the transaction. Compensation is paid at close. The capital provider is not named on this page. Identity is released after an NDA and a qualified file.