$500M Mystery Seller: Who’s Dumping Data-Center Loans After AI Stock Crash?

Source Beincrypto

Someone who lent money to America’s AI building boom wants out. An unnamed holder is auctioning about $500 million of data center loans in one batch, Bloomberg reported Thursday, as AI stocks crashed.

Shareholders sold first. Now a lender wants out too. If the loans sell cheap, building new data centers gets more expensive. Those builders buy the AI chips Nvidia sells.

What Is in the $500 Million Bundle?

The sale covers about a dozen data center loans, including debt tied to operators Vantage Data Centers and CyrusOne, per the report.

One $25 million slice backs Project Jupiter, a huge AI data center campus in New Mexico. It is part of Stargate, the AI venture of OpenAI, Oracle, and SoftBank.

In September, Oracle sent the site’s developer a force majeure notice. Force majeure covers events outside a company’s control. The clause could let Oracle delay payments if the campus misses its 2028 start.

“Project Jupiter remains on our planned schedule,” Oracle said in a statement.

Lenders were already nervous. The site’s $18 billion in loans was quoted at 89 to 91 cents on the dollar in September. Sellers would get back about 90% of what was lent.

Timeline of the data center loans auction and Stargate New Mexico deadlinesKey dates for the data center loans auction. Source: BeInCrypto

Why Buy Before New Mexico Decides?

Bids are due November 19, with a $10 million minimum. The site still needs a state air permit for its on-site power plant. A public hearing is set for December 7, the Albuquerque Journal reported.

So buyers must bid before the permit is decided.

Which Stocks Are Exposed?

Oracle is the site’s main tenant.

The selling also reached bonds. High-risk bonds tied to CoreWeave and Galaxy Digital, a crypto firm that also builds data centers, were among Thursday’s biggest decliners.

Banks have wanted out for months. In May, JPMorgan, Morgan Stanley, Sumitomo Mitsui, and MUFG sought to sell parts of their data center loans, MarketScreener reported, citing the FT.

Still, $500 million is small. JPMorgan and MUFG alone were trying to spread $38 billion of one Oracle-linked deal. Blue Owl, the developer’s parent, said Oracle’s notice does not change its financial commitments to the project.

Thursday’s chip stock crash followed pledges from Texas governor-elect Gina Hinojosa and others to pause new data centers. Lenders give their answer when bids close on November 19.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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