Banks backing Google-linked Texas data center plans are preparing to sell $15 billion of debt as lenders look to reduce exposure to AI infrastructure risk.
Banks financing a Google-backed Texas data center leased to Anthropic are preparing to sell $15 billion of debt, underscoring a broader shift in how Wall Street is funding AI infrastructure. The lenders, including Morgan Stanley, plan to place the debt through bond sales as soon as the loans are drawn, letting them recycle capital instead of keeping large AI exposures on their balance sheets. The project is part of a wider Google financing structure that spans chip manufacturing, construction and energy assets, with more than $150 billion of deals tied to AI infrastructure. The campus in Hubbard, Texas, is expected to carry about a 20% equity stake for Google, while an on-site natural gas plant is meant to avoid grid delays and lower power costs. Sources said the debt will be split into multiple bond sales to match a delayed-draw structure, and that some financing could also be repackaged through leveraged loans. Investors are still likely to show interest because the project is backed by Google and Anthropic, but pricing will reflect construction risk, potential delays and budget overruns. Analysts said the outcome could set a template for future AI data center financing, especially if the market absorbs the bonds without forcing much wider yields.