Meta's El Paso data center financing priced at 7.5% interest
Meta (yep, the company behind Facebook and Instagram) is pouring more money into building its AI infrastructure. But it's getting pricier to do so.
Just to build a new data center in El Paso, Texas, Sopaipilla Investor, a holding company tied to the project, issued $12.55 billion in notes at a steep 7.5% interest rate on July 27.
That's way higher than last year and highlights how expensive it's getting for tech companies to fund big AI projects.
AI bond issuance reaches $270 billion
This spike in borrowing costs isn't just a Meta thing: the whole industry is feeling it.
By early July, companies had raised $270 billion for AI projects through bonds, which is almost double what we saw in 2025 (thanks to Bank of America for the numbers).
Despite investor nerves after Alphabet's recent spending forecast, Meta keeps finding creative ways to raise cash, like joint ventures and project-backed loans, to stay ahead in the AI race.