QTS $50 Billion Data Center Bond Wave Shows 1 Microsoft-Linked Deal Lagging as Citi Flags Debt Structure
Updated
Updated · Bloomberg · Jun 10
QTS $50 Billion Data Center Bond Wave Shows 1 Microsoft-Linked Deal Lagging as Citi Flags Debt Structure
1 articles · Updated · Bloomberg · Jun 10
Summary
One QTS bond sale tied to a Microsoft-backed data center failed to trade in line with Microsoft's own corporate bonds, Citi analysts said Wednesday.
Citi attributed the underperformance to the deal's non-amortized debt structure, a feature that set it apart as investors examined AI-infrastructure financing more closely.
Five investment-grade data center bond sales totaling more than $50 billion have come to market since October, giving investors a broader basis to compare structures and pricing.
The divergence suggests bond buyers are becoming more selective on data center financings even when projects are linked to major technology companies.