AI data-centre debt is turning up everywhere (opens the source in a new tab)
- At least 20 High-yield bond A bond from a riskier borrower that pays more interest to make up for the higher chance of default. bond deals financed data-centre projects in the past 12 months, often issued through obscure special purpose entities.
- The tenants trace back to AI giants: CoreWeave (whose customers include Microsoft, Meta and OpenAI), Google-backed Fluidstack, and reportedly Nvidia in Nevada.
- Some of this debt already sits in mainstream high-yield bond ETF Exchange-traded fund: a basket of shares or bonds you can buy and sell like a single stock., though at under 1% of each fund.
- 20+
- junk-bond deals in a year
- <1%
- of each ETF it sits in
Why it matters Riskier lenders are now funding the build-out behind AI’s biggest names.
Other side Strong, highly rated tenants back many of these leases, and the bonds fund buildings, not chips. Is the risk overstated?