BlackRock’s $12.3 billion bond sale for a Meta data center campus in El Paso drew a lukewarm investor response. The offering intended to fund a 1-gigawatt facility. It attracted $17 billion in orders, representing weaker demand than typical for similar deals.
Investors expressed growing concerns regarding potential overspending on AI infrastructure. A market saturated with similar tech debt financings further dampened appetite. This volume of recent debt from major players forced BlackRock to offer more favorable pricing to attract buyers.
The results signal a shift toward greater selectivity for AI-related projects. This trend contrasts with the previously intense demand for data center bonds.