$240M Hyperscale Data Center Construction

A specialized data center developer had secured a 15-year build-to-suit lease with an investment-grade hyperscale cloud tenant for a 48MW facility in a major Mid-Atlantic power market. The capital required to deliver the build-to-suit substantially exceeded the developer's prior single-project executions and required institutional construction financing.

The lender universe for hyperscale data centers is narrow: a focused group of debt funds, infrastructure lenders, and specialty banks underwrite the asset class. Most generalist commercial construction lenders cannot price the credit.

VS Capital Group ran the process within the active hyperscale data center lender universe, assembling a competitive package against a defined set of lenders with current allocation to the asset class and the tenant.

We structured a $240M senior construction loan at 75% loan-to-cost with a debt fund that underwrote the investment-grade tenant credit, the build-to-suit lease economics, and the project's power and connectivity profile.

Loan documentation included carefully calibrated mechanical-completion and tenant-acceptance milestones tied to the build-to-suit lease, with rate-conversion options at substantial completion.

Closed senior construction debt with conversion to a 10-year fixed-rate facility at tenant acceptance.

Sponsor retained 100% of the GP economics on the development and a programmatic relationship with the equity partner for future hyperscale developments.

Project is actively under construction with mechanical completion targeted on the original lease delivery schedule.