

Bubble or Nothing | Center for Public Enterprise h/t The Syllabus, dry but good.
Data centers are, first and foremost, a real estate asset
They specifically note that after the 2-5 year mini-perm the developers are planning on dumping the debt into commercial mortgage backed securities. Echoes of 2008.
However, project finance lawyers have mentioned that many data center project finance loans are backed not just by the value of the real estate but by tenants’ cash flows on “booked-but-not-billing” terms — meaning that the promised cash flow need not have materialized.
Echoes of Enron.





He came by campus last spring and did a reading, very solid and surprisingly well-attended talk.