The SEC said certain data center securitizations do not qualify as asset-backed securities under federal law, meaning qualifying direct-ownership deals backed by facility net operating income can avoid the specialized disclosure, investor-protection and 5% risk-retention rules applied to post-crisis securitizations. The lighter treatment is expected to lower borrowing costs and speed issuance as data center asset-backed securities and commercial mortgage-backed securities sales in 2025 have already exceeded $25 billion and global data center investment is projected to top $500 billion a year by 2027 amid the AI buildout. Reports describe the timing differently, with the existing account placing the interpretation on July 29 after a July 23 Latham & Watkins request and the new report saying the SEC disclosed the position in a staff letter dated Aug. 10; both accounts say the guidance is limited to owner-operated structures and does not address digital assets, crypto mining or blockchain infrastructure.