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Lending & Credit Risk Equipment Finance

Equipment finance trends: Supporting the data center boom with smarter leasing tools

Kate Randazzo
December 3, 2025
0 min read

Data center equipment finance is the next frontier for equipment lessors 

The rapid expansion of artificial intelligence (AI) is accelerating demand for energy-intensive infrastructure, and data centers are at the heart of it. As workloads grow more complex and computing-intensive, the supporting equipment becomes increasingly expensive and requires financing. Read on to learn how financial institutions can better manage these specialized assets. 

What’s driving the data center equipment boom: AI’s rising energy demands 

It's no secret that the equipment finance sector is picking up steam. A McKinsey analysis shows that by 2030, companies will invest almost $7 trillion in capital expenditures on data center infrastructure globally, and AI is a driving force behind the surge in data center development. From training large language models to running machine learning inference at scale, AI systems require immense computing power. The servers must be kept operational 24/7, which means power infrastructure, cooling systems, and redundant energy sources must be designed into every facility from the start. 

This combination of high costs and specialized equipment makes data center equipment leasing a preferred financing option. It spreads capital outlays over time while enabling operators to scale capacity without compromising liquidity or flexibility. Data center financings in the United States were $30 billion in 2024, and according to S&P Global, data center and AI-related investments accounted for 80% of U.S. private domestic demand growth in the first half of 2025. Equipment lenders have a timely opportunity to support this market through flexible data center equipment lease structures that align with long-term technology needs.  

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What can be financed in a data center? 

Data centers are not monolithic. Each facility consists of multiple layers of equipment and infrastructure, much of which qualifies for equipment leasing. Common leased assets include: 

  • Core IT infrastructure: Servers, racks, cabling, and uninterruptible power supplies (UPS) 
  • Cooling and HVAC: Chillers, aisle containment systems, precision cooling, fans 
  • Power and electrical: Switchgear, electrical panels, transformers, and power distribution units (PDUs) 
  • Energy systems: Battery energy storage systems (BESS), backup generators, and solar PV installations 

In short, every layer that keeps a data center running can be part of a data center equipment lease structure, especially in greenfield or retrofit projects. With assets varying widely in useful life and depreciation schedules, tracking and managing these elements becomes a critical need. 

Why managing data center leases requires specialized systems 

As the market for data center equipment lease transactions grows, many leasing institutions face a familiar challenge: legacy systems or spreadsheets can’t scale.

In the equipment leasing field, manual processes can create bottlenecks. These complex deals often involve: 

  • Mixed-term schedules and asset-level detail 
  • Usage-based billing or variable pricing 
  • Complex tax treatment or bonus depreciation 
  • Residual value planning across multiple asset types 

Tracking this data manually introduces risk and inefficiency. Without systematized visibility into asset performance, end-of-term planning, or lease obligations, lessors may struggle to meet internal targets or customer expectations. 

Specialized lease management software built with energy-heavy portfolios in mind can solve this complexity by automating workflows around invoicing, depreciation, and reporting at the asset level. For example, IFS LeaseWorks provides an end-to-end platform for originating, servicing, and reporting on complex leases—particularly in sectors like data centers where assets are high-cost, high-usage, and diverse. The platform’s strength lies in its ability to handle lease portfolios with: 

  • Detailed asset hierarchies (e.g., power, cooling, IT components) 
  • Variable-rate billing and usage tracking 
  • Tax-advantaged lease structures, including FMV and bonus depreciation options 
  • Advanced reporting for investors, tax partners, and regulatory needs 

Whether financing a mobile data center fleet or structuring a lease around custom-built cooling systems, IFS LeaseWorks helps lessors manage every phase of the data center equipment lease lifecycle. 

Where data center leasing is growing fastest 

According to a CBRE report, Texas and Sun Belt states are leading the next wave of data center development. These regions offer favorable conditions, including: 

  • Lower energy costs and access to renewable energy 
  • Available land and favorable permitting environments 
  • Proximity to emerging AI and tech hubs 
  • Growing demand from both hyperscalers and enterprise users 

In states like Texas, modular data centers, edge facilities, and retrofit projects are gaining momentum, and financing plays a central role. For institutions positioned to support these transactions, having the right system to manage the data center equipment lease portfolio is a profitable advantage. 

 

This article was was written with the assistance of ChatGPT, an AI large language model, and was reviewed and revised by Abrigo's subject-matter expert.

See how IFS LeaseWorks streamlines origination, servicing, and reporting for energy-heavy equipment portfolios.

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About the Author

Kate Randazzo

Content Marketing Manager
Kate Randazzo is a Content Marketing Manager at Abrigo, where she works with industry thought leaders to create digital content that helps financial institutions better serve their customers. Before joining Abrigo, Kate managed social media and produced articles for Campbell University’s quarterly magazine and other university content initiatives. She earned

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About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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