Tools / Term sheets / Data centre construction loan

Annotated term sheet · 12 lines · Q3 2026 edition · data to 30 September 2026 · refreshed with the quarterly index

Data centre construction loan

A model term sheet for a senior secured construction loan to a data centre project company with a hyperscaler or GPU cloud tenant, with each line annotated with what the filed leases, backstops and loans show and where lenders and borrowers push.

For: Lenders, developers and their counsel, financing a pre-let AI data centre to completion.

Randeep Bubbra | Lawyer | Making the next generation of infrastructure financeable · Firm profile · Updated 27 October 2026

How to read it

Each line has model wording, what the filed deals show and where lenders and borrowers push. The first 3 lines are free here; subscribers see every line.

Facility and size
Margin
Maturity and take-out
Lease delivery
Tenant termination
Hyperscaler backstop
Power
Lender protection in the lease
Completion support
Take-out terms: ABS cash trap
Take-out terms: rapid amortisation
Regulatory conditions

Facility and size

Senior secured construction loan of up to US$[•] to [Project SPV] to fund the costs of the [•] MW campus to completion.

What the filings showUS$100m to US$7.1bn across 23 checked US dollar facilities (median US$790m).

LenderCommitments capped at an agreed loan-to-cost, with cost overruns funded by sponsor equity first.

BorrowerA contingency within the facility and the ability to reallocate savings between phases.

Nscale: Kvandal South data centre facilities DDSP: DDSP Sedenak Johor green loan Digital Edge: Digital Edge and B.Grimm Power BKK campus green loan Applied Digital: APLD ComputeCo 3 bridge construction facility EdgeCore Digital Infrastructure: EdgeCore AS01 and AS02 Sterling construction loans TeraWulf: Raylan Data Hawesville delayed draw bridge

Margin

Term SOFR (zero floor) plus [•]% per annum, with commitment and upfront fees as agreed.

What the filings show2.75% to 4.75% over SOFR across 4 checked facilities in the register (median 3.125%). Fees, floors and OID are not included.

LenderConstruction pricing until completion, stepping down only on delivery and rent start.

BorrowerPricing that reflects the tenant's credit from signing, given the backstop.

Applied Digital: APLD ComputeCo 3 bridge construction facility TeraWulf: Raylan Data Hawesville delayed draw bridge Galaxy Digital: project construction senior secured term loan Applied Digital: Data-centre construction loan

Maturity and take-out

Maturity [•] months after closing, expected to be refinanced on completion by [ABS / a term loan].

What the filings show0.9 to 3 years from signing to stated maturity across 4 checked facilities (median 1.25 years).

LenderA short maturity with extension options conditioned on delivery milestones and no default.

BorrowerExtension options at the borrower's election, so a delayed take-out market does not force a refinancing.

Method

Ranges come from the checked records in the InfraCompute register and the filed documents behind the what's market cards, to 30 September 2026. The wording is a model for discussion, not a form for any deal, and the edition changes only with the quarterly index. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.