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Importance of Counterparty Credit Risk in Data Center Financing
In data center financing, understanding the counterparty's credit risk is crucial. The company's business is structured around serving hyperscale customers, AI lab customers, and large enterprise customers that have solid balance sheets. The company's growth is driven by customers' demand for rapid scaling, making the counterparty's credit crucial for securing low-cost capital. The credit facility is backed by commercial contracts with international enterprises with AAA credit ratings, focusing more on trade receivables financing rather than leveraging assets irresponsibly.