The U.S. Securities and Exchange Commission has issued an internal staff letter saying asset-backed securities tied to AI data centers are exempt from core investor-protection rules adopted after the 2008 financial crisis, according to Bloomberg. The exemption covers the so-called risk-retention requirement, which generally requires issuers to keep part of the debt on their own books.
The SEC said data centers are not financial assets that liquidate over time, and that securities linked to them should not be regulated in the same way as ABS backed by auto loans or residential mortgages. While the move does not amount to a formal rule change, Bloomberg said it could still carry significant practical weight because companies had previously tended to comply with the requirements out of regulatory caution.
The market has grown quickly. Annual issuance of data center ABS rose from $2.4 billion in 2020 to $15.5 billion in 2025, more than sixfold over five years. Bloomberg said 2026 could bring another record high for the sector.
According to Bloomberg, the U.S. Securities and Exchange Commission has issued an internal staff letter clarifying that asset-backed securities tied to AI data centers are exempt from core investor-protection rules introduced after the 2008 financial crisis. The exemption includes the so-called risk-retention requirement, which requires issuers to keep part of the debt.
SEC draws a distinction between data center assets and traditional loan-backed ABS
The SEC said data centers are not financial assets that liquidate over time. On that basis, securities linked to data centers should not be subject to the same regulatory treatment as ABS backed by auto loans or residential mortgages.
Bloomberg said the step is not a formal rule change. Even so, the practical effect could be meaningful because companies had generally chosen to follow those requirements out of compliance caution.
Issuance volume has expanded sharply
In market terms, annual data center ABS issuance climbed from $2.4 billion in 2020 to $15.5 billion in 2025, an increase of more than six times in five years. Bloomberg reported that 2026 could set another record high for the market.
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