Data center give and take: AI gives, lawmakers take

Research evidence excerpt

Data center give and take: AI gives, lawmakers take

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CMBS Weekly

Data center give and take: AI gives,

lawmakers take

Key takeaways 17 July 2026

Securitized Products Strategy• Issuance slowed this week, but the forward pipeline remains healthy. We see $114bn

United States

private label supply the end of August.

• Spreads are expected to trade sideways without a macro catalyst. Move neutral Alan Todd, CFA

CMBS Strategist

Agency and private label CMBS. BofAS

+1 646 855 6383

• AI demand drives data center construction although regulatory and other risks gain alan.todd@bofa.com

importance. Nick O'Brien

BofAS

Issuance slows, but the pipeline remains healthy +1nicholas.obrien@bofa.com646 855 6366

Primary market activity paused this week, with only one private-label transaction pricing

amid seasonal slowdown and continued interest rate uncertainty. Despite the quiet

week, issuance fundamentals remain strong, with the visible private-label pipeline

reaching approximately $114bn through August, roughly 14% ahead of last year's pace,

while Agency issuance is running more than 30% ahead of 2025 levels. Strong issuance

remains supported by deep lender liquidity and robust investor demand. Exhibit 1: All spreads were unchanged

this week

Data center give and take: AI gives, lawmakers take Spreads remain at a standstill at near year-

This week, we expand our data center coverage. While AI-driven demand continues to to-date tights

fuel record data center development and vacancy rates remain near historic lows,

On-the-run Conduit bond spreads to

regulatory opposition is becoming an increasingly important consideration. State-level Treasury

legislation, power constraints, permitting challenges, and community pushback could 7/16 WTD MTD YTD Min Max