Goldman sounds out investors for $1.15 billion CoreWeave data center bond

The junk bond would finance a Virginia data center leased to CoreWeave as investors demand higher yields for AI infrastructure debt.

Goldman Sachs is sounding out investor interest for a roughly $1.15 billion junk bond that would finance construction of a data center leased to CoreWeave, Bloomberg reported Wednesday, citing people familiar with the matter.

The offering is expected to reach the market in September, although discussions remain fluid and plans could change, according to the report.

The data center is located near Richmond, Virginia, and is being developed by American Real Estate Partners’ PowerHouse Data Centers and Chirisa Technology Parks.

The project also relies on equity investments from Blue Owl Capital funds, Bloomberg reported.

The financing comes as investors have become more cautious toward debt tied to the rapid expansion of AI infrastructure following heavy issuance earlier this year.

CoreWeave has supported billions of dollars in junk debt issuance by data center developers through long term leases.

However, concerns around the company’s speculative grade credit rating have pushed borrowing costs above those attached to projects backed by major hyperscalers such as Alphabet.

The shift was visible last month when Galaxy Digital paid a 10% yield on a $3.5 billion debt offering backed by a CoreWeave lease in order to attract investor demand.

Goldman Sachs, CoreWeave and Blue Owl did not immediately respond to Bloomberg’s requests for comment.

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