As the artificial intelligence boom continues to accelerate, data center developers continue to turn to the debt market for expansion capital. This includes those tied to tech giants Nvidia (NVDA) and Alphabet’s (GOOGL) Google.
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Trade NVDA with leverageData Center Developers Join the Bond Bandwagon
According to Bloomberg, a data center developer that recently raised $3.8 billion in junk-bond sales for an AI infrastructure tied to Nvidia is back in the market for another $4.54 billion in debt of the same rating. Capital from the five-year offering is expected to support efforts to build a 200-megawatt facility in Storey County, Nevada.
The outlet noted that the said developer is backed by alternative asset manager Tract Capital Management LP and data center builder and operator Fleet Data Centers I LP. The goal is to generate revenue from leasing the facility to Nvidia.
AI Firms Issued $121B in Debt in 2025
Meanwhile, the outlet separately reported Hut 8 Mining Corp. (HUT) — which started out as a crypto mining company but has since transitioned into an AI infrastructure company — is also raising capital from the debt market for what could be a minimum of $3 billion.
Hut 8 is targeting 16-year investment-grade bonds to expand its capital base for its 245-megawatt River Bend data center campus in Louisiana — a project that is linked to Google. In late 2025, Google provided a financial guarantee for Hut 8’s 15-year, $7 billion lease of the Louisiana facility to Fluidstack, a privately held AI infrastructure company.
Both developments come as cloud infrastructure providers in 2025 issued a record-breaking AI-related $121 billion in debt, according to research by BNY Mellon (BK). This has forced investors to pile into credit default swaps in search of protection against possible downsides in AI investments, the investment bank said.
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