AI data-center bond selloff spreads beyond CoreWeave

Bond prices for several large US AI data-center projects were quoted below par in an October 15 comparison, showing that the credit repricing had spread beyond CoreWeave. The comparison included debt tied to Hyperion, two Hut 8 developments and QTS’s Project Excalibur. Investors are demanding more yield to hold the bonds, potentially raising future financing costs for a buildout that depends heavily on borrowed capital.

Secondary-market quotes cited on October 15 put Beignet Investor debt for the Hyperion campus a little below 91 cents on the dollar. The two Hut 8 project bonds were at about 93 and 91, while Project Excalibur bonds were below 87. CoreWeave bonds were quoted below 75 cents and at a yield of nearly 16% on October 14. These prices show market repricing: the reviewed sources did not report a missed payment, bankruptcy, debt acceleration or cancellation of any named project.

CoreWeave had the deepest discount among the bonds in the October 15 comparison, extending a two-day CoreWeave bond selloff that pushed yields above 15%. The company’s June-quarter filing listed $35.6 billion of total indebtedness, including $16.6 billion of notes. It also said net interest expense for the first half of 2026 rose 121% from a year earlier to $1.176 billion.

Hyperion is financed with secured project debt, not a general corporate bond. Blue Owl’s filing on the transaction says Beignet Investor issued $27.294 billion of 6.581% senior secured notes due in 2049 to fund a data-center venture whose campus is leased to Meta. A separate September 28 market quote put the notes at 91 cents on the dollar and a 7.55% yield, showing that the pressure predated the latest comparison.

The Hut 8 discounts also reflect trading after issuance. Hut 8’s June-quarter filing says project subsidiaries issued $3.25 billion of River Bend notes on April 30 and $4.25 billion of Beacon Point notes on June 9, both at par. According to the filing, the notes are obligations solely of the respective project subsidiaries and are not guaranteed by Hut 8. Lease cash flow is expected to be the principal source of debt service.

Sopaipilla Investor bonds also showed pressure. Market commentary published October 2 put them at 99 with a 7.7% yield, down from 104.7 in its August comparison. The same commentary put CoreWeave’s 9.75% notes due 2031 at 87 with a 13.4% yield, down from 92. It said capital remained available, but lenders were seeking higher yields, stronger protections and clearer allocation of construction, power, technology and residual-value risks.

The repricing comes after a rapid expansion in planned AI infrastructure spending. Gartner forecast on October 14 that data-center owners would need $8.5 trillion of cumulative revenue through 2030 to cover announced capital spending, financing costs and a 12% return. It forecast no more than $3.6 trillion of attributable enterprise and consumer AI revenue over the same period.