AI Data Center Financing Gets Costlier as Bond Investors Demand Bigger Concessions

Rising borrowing costs are putting pressure on the massive infrastructure buildout needed to power artificial intelligence models, with bond investors increasingly demanding steeper yields and better terms as lending to data center projects accelerates. Meta Platforms priced a $12.5 billion bond offering for its El Paso, Texas data center complex in July 2026 at yields significantly higher than a structurally similar transaction completed in 2025, signaling a sharp tightening in financing conditions. The shift reflects investor fatigue from the explosive growth in AI infrastructure lending—$75 billion in bonds and loans were issued for data center projects in September and October alone, more than double the annual average of the past decade.