Milbank LLP advised Tract Capital, a leading alternative asset manager focused on building companies that enable rapid scaling of digital infrastructure, and its portfolio company Fleet Data Centers, a developer and operator of mega-scale, single-user data center campuses, in connection with the closing of an upsized $3.8 billion offering of secured notes by its wholly-owned subsidiary. The offering was completed through a private placement to qualified institutional buyers pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act.
The proceeds from the notes will be used to finance a portion of the development and construction of a 230 MW utility capacity (200 MW critical IT capacity) turnkey hyperscale data center and electrical substation on a 252-acre site in Storey County, Nevada. The facility is fully leased under a long-term triple-net lease to an investment grade-rated hyperscale tenant.
The transaction represents the largest digital infrastructure high-yield note offering to date and underscores continued capital markets demand for AI-driven data center assets supported by long-term contracted cash flows.
“This transaction reflects the increasing convergence of capital markets and large-scale digital infrastructure development,” said Corporate Finance and Securities partner and practice group leader Jonathon Jackson. “Investors continue to show strong appetite for well-structured, asset-backed financings tied to hyperscale capacity, and this deal demonstrates how sophisticated capital solutions are evolving to meet the scale and speed of AI-driven infrastructure buildouts.”
The Milbank team was led by Mr. Jackson and included Real Estate partner Alex Meirowitz, Global Project, Energy and Infrastructure Finance chair Dan Bartfeld and partner Jaime Ramirez and Corporate Finance and Securities partner Adam Brenneman. The team also included Corporate Finance and Securities associates Moses Farzan Nekou, Isobel Smith and Nishkarsh Jakhar and law clerk Justin Song, along with Global Project, Energy and Infrastructure Finance associate James Lim.
This offering marks another significant milestone for Milbank’s Digital Infrastructure Practice Group, the leading legal advisor across the full digital infrastructure value chain — from GPU procurement to powered land, data centers, M&A and capital raises throughout the capital stack. In 2025, the firm advised on more than $150 billion in digital‑focused transactions, including several of the largest capital markets, project finance, real estate and M&A matters in the sector. Milbank’s cross‑practice team continues to play a central role in major next‑generation AI infrastructure developments.
