The AI Infrastructure Boom Intensifies
The scale of the AI data center build-out remains one of the most visible trends in the economy and a major driver of demand on Wall Street. Despite concerns about overspending and potential overcapacity, companies are investing heavily to meet growing demands.
High-Yield Bonds for Data Centers
The AI and data center boom, partly driven by Bitcoin miners, is increasingly being financed through high-yield bond issuance. According to TheEnergyMag’s latest newsletter, companies tied to AI data center development have raised about $33 billion in long-term senior notes over the past 12 months, excluding convertible debt.
The interest rate spread is notable: While regulated utilities and traditional energy companies generally borrow at 4% to 5%, AI- and crypto-linked issuers pay closer to 7% to 9%. The average coupon on newly issued US dollar high-yield debt was close to 7.2% in late 2025, from 8% to 9% in 2023, according to Janus Henderson Investors.
Those at the higher end of the spectrum are largely current or former digital asset mining companies that have pivoted into AI infrastructure, suggesting capital remains comparatively expensive for the group. Recent raises include CoreWeave at 9.25% and 9% in May and July 2025, Applied Digital at 9.2% in November, TeraWulf at 7.75%, and Cipher Mining at 6.125% and 7.125%.
The message from lenders is clear: Regulated load and contracted generation still get treated as infrastructure. AI and bitcoin, even when attached to long-term offtake agreements, are still treated as growth credit.
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