SEC Exempts AI Data Center ABS from Core Regulatory Requirements, Further Opening Financing Channels for Tech Companies

According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) recently issued an internal letter explicitly exempting asset-backed securities (ABS) related to AI data centers from core investor protection regulations introduced after the 2008 financial crisis, including the "risk retention" clause requiring issuers to retain a portion of the debt. The SEC determined that data centers are not financial assets that liquidate over time, therefore securities linked to them should not be subject to the same regulatory constraints as ABS related to auto loans or mortgages. Although this move does not constitute a formal rule change, since companies had previously voluntarily complied with relevant regulations out of compliance prudence, the substantive impact cannot be underestimated. In terms of market size, the annual issuance volume of data center ABS has surged from $2.4 billion in 2020 to $15.5 billion in 2025, growing more than sixfold in five years, and is expected to hit a new record high in 2026.