A consortium of banks headed by Goldman Sachs Group Inc. kicked off the sale of roughly $1.1 billion in junk bonds to finance construction of the Digital Drive data center outside Richmond, Virginia. Affiliates of Blue Owl Capital Inc., Cedarwood Investment Group LP, and PowerHouse Data Centers LLC back the project, which is under lease to CoreWeave Inc.
An investor presentation is slated for 10 a.m. in New York on Tuesday, and a person familiar with the plans said the deal is targeted to be set on Wednesday.
Early conversations point to a yield somewhere in the low to mid 9 percent area, though the terms could still shift, according to separate people who asked not to be identified because they are not authorized to speak publicly. The facility is planned to deliver 76 megawatts of IT capacity.
CoreWeave has committed to the entire capacity under a 15-year contract valued at $2.94 billion, with operations projected to start sometime between 2027 and 2028.
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This financing slots into a broader rush of high-yield issuance for artificial intelligence infrastructure, a corner of the market where investors have been asking for richer coupons to back new builds, especially when the tenants are not investment grade. Goldman Sachs declined to comment, and Blue Owl did not immediately respond to a request for comment.
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