Affiliates of Blue Owl, Cedarwood Investment Group LP and PowerHouse Data Centers LLC are listed as sponsors in the deal prospectus. Goldman Sachs Group Inc., Citigroup Inc. and Deutsche Bank AG led the sale. Pricing and yield details came from a person familiar with the transaction who asked not to be named because they are not authorized to speak publicly.
The cash will help expand compute capacity at the Digital Drive campus near Richmond, Virginia. The site is slated for 76 megawatts of IT capacity, and every megawatt is pledged to CoreWeave through a 15-year agreement valued at $2.94 billion, with operations targeted to begin sometime between 2027 and 2028, according to the prospectus.
This financing joins a broader push to fund artificial intelligence infrastructure in the high-yield market, where investors have been asking for richer coupons to bankroll new construction, especially when the tenant is not investment grade, such as CoreWeave. S&P assigned a BB- rating to the notes, which sits three steps below investment grade, and highlighted the concentration risk with its line: "Exposure to a single, speculative-grade tenant remains the key risk."
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A 9.25% yield for five years reflects the premium investors are extracting for a single-tenant, below-investment-grade project. The trade-off is straightforward: elevated income versus concentration and credit risk, with operations not expected to start until 2027 to 2028.
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