Goldman Sachs is preparing $1.15 billion in junk bonds to finance CoreWeave's affiliated AI data center

Goldman Sachs is testing investor demand for an approximately $1.15 billion junk bond issuance, the proceeds of which will be used to build a data center leased to the AI cloud computing company CoreWeave.

Insiders revealed that the project is located near Richmond, Virginia, and is being developed by PowerHouse Data Centers, a subsidiary of American Real Estate Partners, in collaboration with Chirisa Technology Parks, with expectations to enter the market as early as September. This financing comes at a time when investors are becoming more cautious about AI infrastructure debt. As the issuance of bonds related to AI data centers has increased this year, the market has begun to demand higher yields. CoreWeave previously supported a high-yield bond issuance for many data center developers through long-term lease agreements, but its speculative-grade credit rating has also raised financing costs.