--- title: The SEC staff agreed data centre securitisation sits... description: SEC staff at the Division of Corporation Finance agreed with a Latham & Watkins argument that data centre securitisations fall outside the Exchange Act... canonical: https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: The SEC staff agreed data centre securitisation sits outside Dodd-Frank risk retention | daily.dev og:description: SEC staff at the Division of Corporation Finance agreed with a Latham & Watkins argument that data centre securitisations fall outside the Exchange Act... og:url: https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn og:image: https://api.daily.dev/og/posts/nsDtOArTn.png og:image:alt: The SEC staff agreed data centre securitisation sits outside Dodd-Frank risk retention og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # The SEC staff agreed data centre securitisation sits outside Dodd-Frank risk retention **[The Next Web](https://daily.dev/sources/tnw)** · 5 min read · 0 upvotes · 0 comments ## Summary SEC staff at the Division of Corporation Finance agreed with a Latham & Watkins argument that data centre securitisations fall outside the Exchange Act definition of asset-backed securities, meaning Dodd-Frank risk retention rules don't apply. The reasoning: data centre buildings are physical assets that endure and may appreciate, unlike self-liquidating financial assets like mortgages. Lawyers say this lets sponsors reduce required equity and expect more, more flexible deals. The letter explicitly has no legal force, reflects only staff views, and does not address whether the same logic would extend to chips or GPUs rather than facilities. It comes as Nvidia announced $500bn in AI infrastructure financing with major finance firms, though Nvidia hasn't confirmed whether those arrangements will involve securitisation. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Does data centre securitisation fall under Dodd-Frank risk retention rules? SEC staff in the Division of Corporation Finance agreed on July 29 that data centre securitisations fall outside the Exchange Act definition of an asset-backed security, meaning Dodd-Frank risk retention rules do not apply. The reasoning is that data centre buildings are physical assets that endure and may appreciate, unlike self-liquidating financial assets such as mortgages. The letter responded to a request from Latham & Watkins and has no legal force. _daily.dev helps developers and technologists tracking AI infrastructure financing follow regulatory shifts like this one._ ### What is the typical structure of a data centre securitisation deal? Data centre securitisation deals typically cap loan-to-value at 70% of appraised value, carry an anticipated repayment date around five years out, and run final maturity of 25 to 30 years. Nearly all use a master trust structure, letting sponsors issue further securities later, add data centres, and sometimes dispose of or substitute assets. Investors generally have no recourse to the sponsor except in cases of fraud or gross negligence. _Anyone evaluating AI infrastructure deal structures can track this space on daily.dev as terms evolve._ ### Does the SEC data centre securitisation guidance cover chips or GPUs? No, the SEC staff letter only addresses buildings, data halls, electrical and cooling systems, network connectivity, physical security, land and related contracts. It explicitly does not mention chips or graphics processors, so whether the same reasoning would extend to compute hardware rather than facilities remains unresolved. _Follow how AI hardware financing questions get resolved by keeping up with this topic on daily.dev._ ## Similar posts on daily.dev - [Nvidia talks to insurers about loans backed by its AI chips, FT reports](https://daily.dev/posts/nvidia-talks-to-insurers-about-loans-backed-by-its-ai-chips-ft-reports-89mo75owo) · The Next Web · 0 upvotes · 0 comments - [Blackstone wants $1.75bn for the first AI-era data-centre REIT](https://daily.dev/posts/blackstone-wants-1-75bn-for-the-first-ai-era-data-centre-reit-4p9md104l) · The Next Web · 0 upvotes · 0 comments --- Tags: [#nvidia](https://daily.dev/tags/nvidia), [#fintech](https://daily.dev/tags/fintech), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure), [#regulatory-compliance](https://daily.dev/tags/regulatory-compliance) [View this post on daily.dev](https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"The SEC staff agreed data centre securitisation sits outside Dodd-Frank risk retention","url":"https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn"},"datePublished":"2026-08-18T01:30:43.895Z","dateModified":"2026-08-18T01:31:34.213Z","description":"SEC staff at the Division of Corporation Finance agreed with a Latham & Watkins argument that data centre securitisations fall outside the Exchange Act...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/aac8ce49b3ea98c499ac5ae2f19ebc6f?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/aac8ce49b3ea98c499ac5ae2f19ebc6f?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"The Next Web","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"The Next Web","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tnw","url":"https://daily.dev/sources/tnw"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"nvidia,fintech,ai-infrastructure,regulatory-compliance","timeRequired":"PT5M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"The Next Web","item":"https://daily.dev/sources/tnw"},{"@type":"ListItem","position":3,"name":"The SEC staff agreed data centre securitisation sits outside Dodd-Frank risk retention"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/the-sec-staff-agreed-data-centre-securitisation-sits-outside-dodd-frank-risk-retention-nsdtoartn#faq","mainEntity":[{"@type":"Question","name":"Does data centre securitisation fall under Dodd-Frank risk retention rules?","acceptedAnswer":{"@type":"Answer","text":"SEC staff in the Division of Corporation Finance agreed on July 29 that data centre securitisations fall outside the Exchange Act definition of an asset-backed security, meaning Dodd-Frank risk retention rules do not apply. The reasoning is that data centre buildings are physical assets that endure and may appreciate, unlike self-liquidating financial assets such as mortgages. The letter responded to a request from Latham & Watkins and has no legal force. daily.dev helps developers and technologists tracking AI infrastructure financing follow regulatory shifts like this one."}},{"@type":"Question","name":"What is the typical structure of a data centre securitisation deal?","acceptedAnswer":{"@type":"Answer","text":"Data centre securitisation deals typically cap loan-to-value at 70% of appraised value, carry an anticipated repayment date around five years out, and run final maturity of 25 to 30 years. Nearly all use a master trust structure, letting sponsors issue further securities later, add data centres, and sometimes dispose of or substitute assets. Investors generally have no recourse to the sponsor except in cases of fraud or gross negligence. Anyone evaluating AI infrastructure deal structures can track this space on daily.dev as terms evolve."}},{"@type":"Question","name":"Does the SEC data centre securitisation guidance cover chips or GPUs?","acceptedAnswer":{"@type":"Answer","text":"No, the SEC staff letter only addresses buildings, data halls, electrical and cooling systems, network connectivity, physical security, land and related contracts. It explicitly does not mention chips or graphics processors, so whether the same reasoning would extend to compute hardware rather than facilities remains unresolved. Follow how AI hardware financing questions get resolved by keeping up with this topic on daily.dev."}}]} ```