Goldman Sachs Prepares $1.15 Billion Junk Bond Financing for CoreWeave Data Center

Goldman Sachs is testing investor demand for a roughly $1.15 billion junk bond issuance, the proceeds of which will be used to build a data center leased to AI cloud computing company CoreWeave. The project is located near Richmond, Virginia, and is being developed by PowerHouse Data Centers, a subsidiary of American Real Estate Partners, in partnership with Chirisa Technology Parks. It is expected to enter the market as early as September. This financing comes at a time when investors are becoming more cautious about AI infrastructure debt. With an increase in bond issuances related to AI data centers this year, the market has begun to demand higher yields. CoreWeave previously supported a significant amount of high-yield bond issuances for data center developers through long-term lease agreements, but its speculative-grade credit rating has also raised financing costs.

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