An unnamed holder is auctioning roughly $500 million of data center loans in a single batch, Bloomberg reported Thursday, as AI stocks crashed. The sale marks a shift in the AI building boom: after shareholders sold, a lender now wants out too.
If the loans sell cheap, building new data centers could become more expensive — and those builders are the buyers of the AI chips Nvidia sells.
What is in the $500 million bundle?
The sale covers about a dozen data center loans, including debt tied to operators Vantage Data Centers and CyrusOne, according to the report.
One $25 million slice backs Project Jupiter, a large AI data center campus in New Mexico. It is part of Stargate, the AI venture of OpenAI, Oracle and SoftBank.
In September, Oracle sent the site's developer a force majeure notice, a clause covering events outside a company's control that could let Oracle delay payments if the campus misses its 2028 start. Oracle said in a statement that "Project Jupiter remains on our planned schedule."
Lenders were already nervous. The site's $18 billion in loans was quoted at 89 to 91 cents on the dollar in September, meaning sellers would get back about 90% of what was lent.
Why buy before New Mexico decides?
Bids are due November 19, with a $10 million minimum. The site still needs a state air permit for its on-site power plant, and a public hearing is set for December 7, the Albuquerque Journal reported. Buyers must therefore bid before the permit is decided.
Which stocks are exposed?
Oracle is the site's main tenant.
The selling also reached bonds. High-risk bonds tied to CoreWeave and Galaxy Digital, a crypto firm that also builds data centers, were among Thursday's biggest decliners.
CoreWeave bonds fell as low as 78 cents on the dollar, while its 2031 unsecured debt traded at 79.5 cents, implying discounts exceeding 20% to face value. Its 2030 and 2032 bonds also plunged, with yields exceeding 15%.
Banks have wanted out for months. In May, JPMorgan, Morgan Stanley, Sumitomo Mitsui and MUFG sought to sell parts of their data center loans, MarketScreener reported, citing the FT.
Still, $500 million is small. JPMorgan and MUFG alone were trying to spread $38 billion of one Oracle-linked deal. Blue Owl, the developer's parent, said Oracle's notice does not change its financial commitments to the project.
Thursday's chip stock crash followed pledges from Texas governor-elect Gina Hinojosa and others to pause new data centers. Lenders give their answer when bids close on November 19.
