Blackstone to raise USD 3.46B bond, Meta finances USD 30B data center via SPV
The AI boom is turning capital markets into a construction site. Companies that power large‑scale models need miles of servers, and the price tag is climbing faster than the hardware itself. Investors are now watching a wave of bond issuances and special‑purpose vehicles that funnel billions into the bricks and wires behind the cloud.
That shift matters because it signals how the industry will meet the compute demand that analysts say will dominate tech spending for years to come. While traditional lenders have long underwritten data‑center projects, the scale of today’s ambitions is prompting a new breed of financing. Morgan Stanley’s latest outlook warns that private capital will have to marshal roughly $800 billion in the next 24 months just to keep pace.
In that context, the moves by two heavyweight financiers stand out as a barometer for where the money is flowing and how quickly the sector hopes to lock in capacity.
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Blackstone is planning to raise $3.46 billion through a data center bond, while Meta has used a special purpose vehicle to finance $30 billion for a new data center. Morgan Stanley projects that private lenders will need to supply $800 billion over the next two years to meet the sector's appetite fo
Blackstone is planning to raise $3.46 billion through a data center bond, while Meta has used a special purpose vehicle to finance $30 billion for a new data center. Morgan Stanley projects that private lenders will need to supply $800 billion over the next two years to meet the sector's appetite for capital. Rising debt levels create new risks for tech and finance Experts are warning that the mounting debt could destabilize both the tech sector and financial markets.
Only about three percent of consumers are currently willing to pay for AI services. The Bank of England cautions that if these hyperscalers can't cover their capital costs through profits, systemic risks could leak into the broader credit markets. "This is a fast-evolving topic, and the future is highly uncertain," the Bank wrote in late October.
Meanwhile, banks like Sumitomo Mitsui, BNP Paribas, and Goldman Sachs are backing an $18 billion loan for OpenAI's Stargate data center in New Mexico, The Information reports. This is just part of a wider expansion, which includes a $38 billion push for additional data center sites in Texas and Wisconsin. Self-reinforcing financial loops add to instability Another layer of risk comes from the circular flow of capital between tech companies.
Hyperscalers like Oracle, Google, and Microsoft invest in firms such as OpenAI, which then spend that money back on cloud and hardware from those same hyperscalers. OpenAI's contracts for roughly $1 trillion in compute have already secured more than 20 gigawatts of capacity, driving further growth in hyperscaler stocks.
Will this debt‑fueled sprint sustain? The numbers speak for themselves: $112 billion poured into AI infrastructure in just three months, and the financing playbook now reads like a ledger of bonds and special‑purpose vehicles. Blackstone’s upcoming $3.46 billion data‑center bond and Meta’s $30 billion SPV‑backed project illustrate how firms are pushing debt off balance sheets to keep cash flow intact.
Yet, Morgan Stanley warns that private lenders may have to supply roughly $800 billion in the next two years to satisfy the sector’s appetite. Because such volumes dwarf traditional tech capex, questions arise about credit risk and the durability of these financing structures. While the immediate goal is clear—scale AI compute quickly—the long‑term impact on balance sheets remains uncertain.
If lenders tighten standards, the current pace could slow, but the article offers no data on how companies will adjust. Ultimately, the trend underscores a willingness to assume significant leverage, but whether that translates into lasting advantage is still unclear.
Further Reading
- Blackstone completes $1.2 billion senior notes offering - Investing.com
- Blackstone Completes Senior Notes Offering - Blackstone
- Blackstone Prices $1.2 Billion Senior Notes Offering - Nasdaq
- Blackstone Completes Senior Notes Offering - Simpson Thacher & Bartlett LLP
Common Questions Answered
How much is Blackstone planning to raise through its data‑center bond, and what purpose does the bond serve?
Blackstone aims to raise $3.46 billion via a data‑center bond. The proceeds are intended to fund the construction and expansion of server facilities needed for large‑scale AI models, allowing the company to meet growing compute demand without tapping cash reserves.
What financing structure did Meta use for its $30 billion data‑center project, and why is it significant?
Meta financed the $30 billion data‑center initiative through a special‑purpose vehicle (SPV). This structure isolates the debt from Meta’s balance sheet, preserving cash flow while still providing the massive capital required for AI‑focused infrastructure.
According to Morgan Stanley, how much capital will private lenders need to supply for AI infrastructure over the next two years, and what risk does this pose?
Morgan Stanley projects that private lenders will need to provide roughly $800 billion in the next two years to satisfy AI infrastructure financing needs. Such a large influx of debt raises concerns about heightened financial risk and potential destabilization of both the tech sector and broader markets.
What does the $112 billion figure mentioned in the article represent, and how does it relate to the recent bond and SPV activities?
The $112 billion represents the total amount of capital poured into AI infrastructure over a three‑month period. This surge underscores why firms like Blackstone and Meta are turning to bonds and SPVs to quickly mobilize billions of dollars for data‑center construction.