Meta’s Texas data‑center project has priced a $12.5B offering with a higher yield than last year’s deal. Lenders demand higher rates as the AI debt boom pushes up the cost of capital across the tech industry.

New AI projects have already raised $270B in bonds this year, nearly double the total of 2025, per Bank of America Global Research. Concerns over further AI‑adjacent debt after Alphabet’s aggressive forecast caused a sell‑off in tech stocks and lowered bond prices for Microsoft and Amazon.

Despite investor fatigue, the data‑center boom is set to generate more debt, even at higher costs. Meta says it will need to raise hundreds of billions to support its AI infrastructure and is in talks with firms like Blackstone for additional funds. Nvidia is negotiating a $250B backstop with OpenAI to finance a large Ohio data‑center, according to the Wall Street Journal.

Bank of America’s Neha Khoda notes the market expects the build to continue at a higher price point. The El Paso project, owned 80% by Black Rock funds, offers bonds maturing in 2048 with yields about 7.5% above the Treasury benchmark.