Financing and contracts
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Financing and contracts Power contracts
TeraWulf Says an Amended Electric Service Agreement Increases the Contracted Power at Its Muskie Data Campus
TeraWulf's release of October 5, 2026 says an amended and restated electric service agreement with a utility increases the contracted power capacity at its Muskie Data Campus in eastern Kentucky, and advances the planned delivery of the campus's second phase from 2030 to 2029, "subject to Kentucky Public Service Commission approval" and the utility's construction schedule.
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Financing and contracts Financing
To Secure Access to Power: Funding for AI in the Reserve Bank of Australia's Financial Stability Review of October 2026
The Reserve Bank of Australia's Financial Stability Review of October 2026 carries a box on how the AI build-out is funded. It says that "to secure access to power, data centre developers are increasingly obtaining large bank-sponsored letters of credit that guarantee the costs of grid and generation upgrades required to connect new facilities."
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Financing and contracts Financing
AI Debt and the Risk of Disappointed Expectations: The Bank of England Committee's Record of September 2026
The Bank of England's Financial Policy Committee says the financing of AI-related investment "continues to grow rapidly", with an increasing volume financed through debt. Its record of the meeting on September 25, 2026 says that rising indebtedness, combined with opacity and, at times, "circular arrangements", can complicate the assessment of risks and could amplify losses if expectations disappoint.
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Financing and contracts Power contracts
Equipment Ordered, Offtake Intended: BKV's Contract and Its Hyperscaler Backstop
A BKV subsidiary has executed a contract for natural gas-fired power generation equipment for a prospective project in Texas, and a hyperscaler the release calls the intended off-taker has agreed to reimburse a portion of the costs. If BKV and the hyperscaler have not reached mutually agreeable offtake arrangements by March 31, 2027, BKV may terminate the contract.
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Financing and contracts Power contracts
Primary Power for a Data Center: Kodiak Gas Services' Agreement in West Texas
Kodiak Gas Services' release of September 21, 2026 announces an agreement to provide behind-the-meter, baseload power capacity to a West Texas data center "for a term of six years," from natural gas-fueled generation units. The customer is described and not named, and the release states no price.
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Financing and contracts Financing
Its First Issuance Since 2023: Aligned Data Centers' Release on an Asset-Backed Securitization
On July 28, 2026, Aligned Data Centers said it had completed an issuance of asset-backed securities backed by four of its data center campuses. Its release says the net proceeds will fund its development pipeline, refinance upcoming debt maturities and satisfy reserve account requirements, and gives no split between the three.
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Financing and contracts Financing
As Necessary to Ensure the Timely Completion: Applied Digital's Release on the Pricing of Senior Secured Notes to Fund the Fourth Building at Polaris Forge 1
On June 9, 2026, Applied Digital said a subsidiary had priced senior secured notes due 2031. Its release says the subsidiary intends to use the net proceeds to fund construction at the fourth building of its campus at Ellendale, North Dakota, repay a bridge loan facility, fund debt service reserves and pay transaction expenses, and that the company will provide a completion guarantee.
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Financing and contracts Financing
Repaid With Proceeds From the Notes: Core Scientific's Form 8-K on Its Senior Secured Notes and Its Bridge Facility
In a Form 8-K dated May 6, 2026, Core Scientific reports that a subsidiary completed a private offering of senior secured notes due 2031, and that the company repaid all the borrowings outstanding under a bridge credit agreement of March 2026 with proceeds from the notes. The filing also describes a completion guarantee for data center projects, which it says is not a guarantee of the notes.
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Financing and contracts Financing
Into a Fifth Geographic Market: Switch's Release on Its Series 2026-1 Asset-Backed Notes
On April 14, 2026, Switch said it had closed an asset-backed securities offering, its fifth since 2024. Its release says net proceeds will be used to repay existing debt and for general corporate purposes, and that the deal adds a data center in Reno, Nevada, to the securitized pool.
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Financing and contracts Financing
Economically Akin to Debt: A BIS Note on Financing AI Infrastructure
A note in the BIS Quarterly Review of March 2026 describes how big US tech firms borrow to build AI infrastructure, through bonds and through vehicles that keep most of the debt off their balance sheets. Its authors call the second kind shadow borrowing, "obligations that are economically akin to debt but largely reside outside corporate balance sheets."
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Financing and contracts Power contracts
An Electric Service Agreement Before the Money: The Escrow on Notes of an Applied Digital Subsidiary, March 2026
The indenture of March 10, 2026 for notes of APLD ComputeCo 2 LLC, an indirect subsidiary of Applied Digital, keeps the money from the notes in escrow until an officer certifies an electric service agreement that "provides electricity sufficient" for the data center leases, and has the notes redeemed if that certificate has not come by June 30, 2026.
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Financing and contracts Power contracts
A Firm Reservation and One That Ended Early: Liberty Energy's Presentation of March 2026 on Its Power Business
In a presentation dated March 2026, Liberty Energy describes its business of owning and operating distributed power assets for customers. Its slides report a power development agreement anchored by a firm reservation contract, and a reservation agreement that ended early after the project behind it was modified and delayed.
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Financing and contracts Financing
Exit Risk and Other Tail Risks: Chicago Fed Insights on Large Banks' AI-Adjacent Lending
A note in the Federal Reserve Bank of Chicago's series Chicago Fed Insights, dated February 2026, looks at large banks' direct commercial lending to what it calls AI-adjacent borrowers, data centers among them, and at the tail risks for lenders. The note says the opinions are the authors' own.
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Financing and contracts Financing
Construction, Power Availability and Tenant Concentration: A BIS Bulletin on Financing the AI Boom
A BIS Bulletin of January 7, 2026 says the size of anticipated AI investment needs will require firms to shift from operating cash flows to debt, with private credit playing a rapidly increasing role. It names power availability among the risks that may put that financing outside traditional bank and bond financing. The views are its authors'.
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Financing and contracts Financing
Access to Power and the Debt Behind AI: A Box in the Bank of England's Financial Stability Report of December 2025
In its Financial Stability Report of December 2025, the Bank of England's Financial Policy Committee says debt financing in the AI sector is increasing quickly. A box on AI counts "the degree of physical constraints to rapid AI infrastructure development (most likely access to power)" among its sources of uncertainty, and says that if access to power acts as a bottleneck, for example through delays in connecting new AI data centers to the grid, it can weigh on their credit risk.
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Financing and contracts Power contracts
Regardless of Actual Usage: The Kansas Commission's Large Load Rate Plan
On November 6, 2025, the Kansas Corporation Commission said it had approved a unanimous settlement agreement creating a Large Load Power Service rate plan. Its release says customers on the plan will pay a minimum monthly bill regardless of actual usage, provide collateral, and pay an exit fee if the contract is terminated early.
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Financing and contracts Financing
A Four-Year Initial Term With Options to Extend: Meta's Hyperion Joint Venture
On October 21, 2025, Meta announced a joint venture with funds managed by another firm to develop and own the Hyperion data center campus in Louisiana. Meta's leases of the campus will have a four-year initial term with options to extend, and Meta gave the joint venture a residual value guarantee whose cap and conditions the release does not give.
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Financing and contracts Power contracts
A PPA for an Advanced, GEN IV Reactor: Google, Kairos Power and TVA on Hermes 2
On August 18, 2025, Google, Kairos Power and the Tennessee Valley Authority announced a new collaboration in which, through a power purchase agreement between Kairos Power and TVA, Kairos Power's Hermes 2 plant in Oak Ridge, Tennessee, will deliver energy to the TVA grid that powers Google data centers in Tennessee and Alabama. The release says that output will be "generated by a single reactor, scheduled to begin operations in 2030."
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Financing and contracts Power contracts
In a Manner Designed to Protect Existing Customers: The Georgia Commission's Order on One Utility's Rules for Large New Customers
On January 23, 2025, the Georgia Public Service Commission approved, as modified by its staff, one utility's revisions to its rules for large new customers, which allow minimum billing requirements and longer contract term lengths. The order gives no figure for either, and requires the utility to file the complete contract on all new contracts.
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Financing and contracts Financing
Subject to Closing Conditions: Equinix's Release on a Joint Venture for Hyperscale Data Centers
On October 1, 2024, Equinix announced the signing of a joint venture agreement with two partners, subject to closing conditions. Each party has made equity commitments, the venture expects to take on debt, and the company expects it to build campuses for hyperscale customers.
