An anonymous investor is auctioning a portfolio of data center loans worth approximately $500 million. The bundle includes about a dozen loans, with debt linked to operators such as Vantage Data Centers and CyrusOne. Among the assets is a $25 million slice tied to Project Jupiter, an AI data center campus in New Mexico that is part of the Stargate venture involving OpenAI, Oracle, and SoftBank.
The auction process requires bids to be submitted by November 19, with a minimum bid threshold of $10 million. The sale occurs amid uncertainty regarding the project, as Oracle issued a force majeure notice in September, potentially allowing for payment delays if the facility fails to meet its 2028 operational deadline. Additionally, the site is awaiting a state air permit for its power plant, with a public hearing scheduled for December 7.
Market sentiment has been affected by broader declines in AI-related stocks and debt instruments. Bonds associated with CoreWeave and Galaxy Digital have experienced significant drops, with some CoreWeave debt trading at discounts exceeding 20% of face value. Yields on certain CoreWeave bonds have climbed above 15 percent, reflecting increased investor caution regarding data center financing.
Financial institutions have been attempting to reduce their exposure to the sector for several months. In May, banks including JPMorgan, Morgan Stanley, Sumitomo Mitsui, and MUFG sought to offload portions of their data center loan portfolios. Despite the current $500 million auction, the scale remains relatively small compared to larger credit facilities, such as the $38 billion deal previously linked to Oracle.
