Investors are shifting capital away from speculative data center projects toward ventures supported by major cloud providers. Lenders are now requiring higher yields and more stringent terms, creating a more challenging credit environment for developers lacking blue-chip tenants.
By August 2026, debt issuance related to artificial intelligence reached nearly $500 billion, representing 20% of high-rated US corporate bond issuance. This marks a twentyfold increase from the 1% share recorded in 2024. Morgan Stanley projects total AI infrastructure spending to hit $3 trillion by 2028, with half expected to be debt-financed.
Yields on data center deals are rising. A Meta-backed project in El Paso priced at 7.53% in July 2026, compared to 6.58% for a previous deal. Meanwhile, BB-minus bonds linked to CoreWeave carry yields near 10%. CoreWeave noted that a 100-basis-point rate increase could raise its quarterly interest expenses by $30 million.
Operational challenges are also impacting financing. In September 2026, Oracle issued a force majeure notice for its Project Jupiter data center in New Mexico due to power and permitting issues. Following this, Oracle faced difficulties securing syndicated loans, and its stock price experienced downward pressure.
