The SEC issued its clarification in response to a letter from law firm Latham & Watkins concerning the regulatory treatment of securities used in certain data center financing transactions. Demand for data center financing has accelerated alongside the global race to develop artificial intelligence infrastructure. Securitization could become an increasingly attractive financing option as companies seek to convert predictable data center revenues into investable securities. The SEC’s clarification therefore comes at a pivotal moment for AI infrastructure financing. As computing demand continues to rise, regulatory certainty around data center securitizations could support broader access to capital and help fund the next wave of U.S. data center expansion.