Blackstone to raise USD 3.46B bond, Meta finances USD 30B data center via SPV
When I scan the latest filings, the AI rush feels a bit like a construction site on the trading floor. Companies that run the biggest models are buying miles of servers, and the cost is climbing faster than the chips themselves. Investors now seem to be chasing a flood of bond issues and special-purpose vehicles that push billions into the racks and wiring behind the cloud.
That matters because it hints at how the sector will handle the compute demand analysts say will dominate tech spending for years. Traditional lenders have long funded data-center builds, but the sheer scale today looks to be spawning a new kind of financing. Morgan Stanley’s recent outlook suggests private capital may need to marshal roughly $800 billion in the next 24 months just to stay ahead.
In that light, the moves of two heavyweight financiers feel like a barometer for where the money is heading and how fast the industry 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 centre. Morgan Stanley projects that private lenders will need to supply $800 billion over the next two years to meet the sector's appetite for.
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.
Can this debt-driven rush keep going? In just three months we saw about $112 billion flow into AI hardware, and the financing playbook now looks like a stack of bonds and special-purpose vehicles. Blackstone is lining up a $3.46 billion data-center bond, while Meta has a $30 billion SPV-backed scheme, both moves seem aimed at keeping debt off the balance sheet and preserving cash.
Morgan Stanley, however, cautions that private lenders might need to provide roughly $800 billion over the next two years to feed the sector’s appetite. Those figures dwarf the usual tech capex, so credit risk and the durability of these structures become real concerns. The short-term goal, getting more AI compute up fast, is obvious, but the long-term effect on balance sheets is still fuzzy.
If lenders start tightening standards, the current speed could ease, yet we have no clear data on how firms would respond. In short, companies appear willing to shoulder a lot of leverage; whether that turns into a lasting edge remains uncertain.
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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.