Meta faces higher borrowing costs in $12 billion data center financing

According to reports, bondholders are demanding significantly higher yields on a new $12 billion financing deal for a Meta (recognized as an extremist organization in Russia) data center compared to the terms agreed nine months ago. The market has already priced in increased risk associated with AI financing. The nearly 1 GW data center project in El Paso, Texas, plans to issue bonds through a special purpose vehicle (SPV) managed by BlackRock. Preliminary negotiations are discussing yields above 7%. Sources note that price discussions are at an early stage and may change when the deal officially launches, which is expected no earlier than next Monday.