Blue Owl-Backed Data Center Raises $1.1 Billion in Junk Bonds for CoreWeave AI Infrastructure

A data center project backed by Blue Owl Capital and supported by a 15-year CoreWeave lease successfully completed a $1.1 billion junk-bond offering this week, testing the viability of financing large-scale AI infrastructure through high-yield debt. Goldman Sachs led the syndication of five-year notes priced at 98.5 cents on the dollar, yielding 9.25%—roughly 270 basis points above similarly rated debt—to compensate investors for construction and operational risks spanning until 2027-2028. The facility, called Digital Drive, is located near Richmond, Virginia and designed to deliver approximately 76 megawatts of IT capacity exclusively leased to CoreWeave under a $2.94 billion, 15-year contract. The deal underscores intensifying competition for AI infrastructure capital, particularly as cloud providers struggle to secure sufficient GPU and compute resources to meet demand from enterprises and AI application developers.