"Blue Owl Capital, a leading investor in the data center boom, was unable to arrange financing for a $4 billion data center it is co-developing in Pennsylvania after pitching lenders to help bankroll the project in recent months. The facility, 80 miles west of Philadelphia in the city of Lancaster, will be occupied by CoreWeave, a provider of artificial intelligence cloud computing services that has become a closely watched name in the AI race for its rapid expansion - and the billions of dollars of high-interest-rate debt it has taken on to fuel that growth."
"An executive who arranges debt for major data center deals told Business Insider that the lack of interest in the Lancaster project was due to growing caution among lenders and investors about taking on sizable exposures to AI players with less-than-sterling credit. CoreWeave has a below-investment-grade rating of B+, according to S&P Global Ratings. "We saw it. We passed," a senior executive at a large specialty lender told Business Insider."
Blue Owl Capital could not secure third-party financing for a $4 billion data center co-developed in Lancaster, Pennsylvania, after pitching lenders. The Lancaster facility will be occupied by CoreWeave, an AI cloud-computing provider that expanded rapidly and took on billions in high-interest-rate debt. Lenders and investors showed caution about sizable exposures to AI companies with below-investment-grade credit; CoreWeave holds a B+ rating from S&P Global Ratings. At least one large specialty lender passed on the deal. Blue Owl indicated the project is under construction and described it as fully funded, on time, and on budget.
Read at Business Insider
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