According to CNBC, recent Securities and Exchange Commission guidance is supporting debt-fueled data center buildouts tied to artificial intelligence, including Nvidia Corp.'s $500 billion in partially backstopped agreements with private equity firms announced last week. Legal specialists said the SEC's position could make data center financing more flexible and capital-efficient by easing risk-retention requirements tied to certain securitizations. Orion Mountainspring of Orrick said the response from the SEC should be welcomed by firms considering such transactions, while B.K. Lee of Alston & Bird said the guidance could reduce rigid structured-finance constraints. Seth Messner of Katten Muchin Rosenman said the SEC effectively agreed with Latham Watkins that some data center debt is exempt from securitization rules, and he said the guidance appears applicable to Nvidia's arrangements with KKR, Apollo and other financial firms.