Rents, Lease Pass Throughs Support US Data Centers Amid Higher Costs

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Tariffs, geopolitical tensions, and federal policy changes are disrupting supply chains, increasing data center and utility capex and operating costs, according to Fitch Ratings in its new report U.S. Data Centers Resilient Amid Rising Costs. However, the credit quality of data center REITs, digital infrastructure projects, and CMBS and ABS data center transactions is not likely to be affected as rated entities are able to absorb or pass through capex and power costs to tenants.