Goldman Sachs prepares $1.15 billion junk debt to finance CoreWeave-linked AI data centers

In comparison, Goldman Sachs is testing investors' demand for an approximately $1.15 billion junk bond issuance. The bond funds will be used to build a data center leased to AI cloud computing company CoreWeave.

People familiar with the matter revealed that the project is located near Richmond, Virginia, USA, developed by PowerHouse Data Centers and Chirisa Technology Parks under American Real Estate Partners, and is expected to enter the market as early as September.

The funding comes at a time when investors are wary of AI infrastructure debt. Due to the increase in AI data center related bond issuance this year, the market is beginning to demand higher yields. CoreWeave previously supported the issuance of high-yield bonds by a large number of data center developers through long-term lease agreements, but its speculative credit rating also boosted financing costs.