Offtaker
The contractual purchaser of a project's output or reserved service, such as compute capacity or data-centre space.
How it works
The offtaker is the party that buys the output or reserved service of a project. In power projects it is the buyer under a power purchase agreement; in AI infrastructure it is the customer contracting for GPU capacity or the tenant leasing data centre space.
In GPU and data centre deals
The offtaker's credit sets the price and size of most AI infrastructure debt. GPU loans backed by contracts with investment-grade hyperscalers have priced far tighter than loans relying on smaller AI companies. Lenders review the offtaker's contract terms, its parent support, and whether it will sign a direct agreement recognising the lenders' rights.
What gets negotiated
- Credit quality of the offtaker and its guarantor
- Length and firmness of the commitment
- Direct agreement or consent to assignment
- Concentration on one offtaker across the financed portfolio
Why the distinction matters
Identify the legal payer rather than the end user's brand. Performance requirements, credit support and assignment rights determine how contracted revenue can support debt.
Read the structure
A guide to leases, guarantees, backstops and the claims they actually support.
Hyperscaler support: separate customer credit from lender recourse ↗For in-house counsel
Take it to the documents
The filed wording behind GPU and data centre financings, for either side of the table. Previews are open; the full text is free with InfraCompute Weekly.
- Financing clause libraryCash traps, coverage ratios, cures and step-in, from the filed deals.
- Contract libraryGPU contracts, leases, power, equity and JVs, quoted from filed contracts.
- Issues list builderBuild an issues list from the lender’s or the borrower’s side.
- The legal desk for in-house counselContract library, issues lists, checklists and English law notes.
Related terms
Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.
← Browse all definitions