Debt financing
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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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Electrical Equipment, Electricians and a Pause in Texas: Data Centers in the Federal Reserve's Beige Book of October 2026
The Federal Reserve's Beige Book of October 2026 summarizes what contacts outside the Federal Reserve System reported in its twelve districts. In the Kansas City Fed's section, "it was noted that the data center buildout has crowded out other production and put pressure on the labor market."
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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 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 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 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.
