Wholesale colocation
Colocation sold in large blocks, such as whole halls or floors, to fewer tenants on longer contracts.
How it works
Wholesale colocation leases large blocks of capacity, typically whole data halls, floors or buildings measured in megawatts, to a small number of tenants on long contracts. The tenant often has input into the fit-out and operates its own equipment, while the operator runs the building and power infrastructure.
In GPU and data centre deals
Wholesale leases to hyperscalers and large neoclouds are the main cash flow behind data centre ABS, CMBS and project bonds. Long terms and strong tenants support high leverage, but tenant concentration is high, so rating agencies and lenders apply concentration limits and look at renewal probability and the cost of re-letting a hall if a tenant leaves.
What gets negotiated
- Lease term, renewal options and early termination rights
- Tenant concentration within the financed pool
- Power pricing and pass-through
- Re-letting assumptions used for debt sizing
In the filed deals
CyrusOne's 2025-1 ABS was reported as backed by 13 stabilised data centres with 98 tenants.
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.
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Related terms
Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.
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