Goldman Sachs readies $1.15 billion junk bond for CoreWeave-linked AI data center financing

BlockBeats News, August 20, Goldman Sachs is testing investor demand for an approximately $1.15 billion junk bond issuance, with the proceeds earmarked for the construction of a data center leased to AI cloud computing company CoreWeave.

Sources familiar with the matter revealed that the project is located near Richmond, Virginia, and is being developed by PowerHouse Data Centers under American Real Estate Partners in collaboration with Chirisa Technology Parks, with the earliest expected entry into the market in September.

This financing comes at a time when investors are becoming more cautious about AI infrastructure debt. With an increase in AI data center-related bond issuances this year, the market is starting to demand higher yields. CoreWeave has previously underpinned many data center developers' high-yield bond issuances through long-term lease agreements, but its speculative-grade credit rating has also raised the cost of funding.