US government bond yields are at their highest since 2007: the debt-funded build-out of SI data centers is getting more expensive
Prepared by Sintelligent with the help of SI. Publication time restored from the build log. . Updated: .
The SI build-out is not stopping, but the money for it is getting more expensive, and the advantage will go to giants with the cheapest capital.
The yield on 10-year Treasury bonds has reached 5.17%, about a percentage point higher than at the start of the year. JPMorgan expects up to $4.1 trillion of SI debt by 2030; SoftBank this week borrowed $11.1 billion with high-yield bonds at 9.75% on the seven-year tranche, and CoreWeave warned that each +1 percentage point in rates adds about $30 million a year in interest for it. The largest investment-grade cloud companies still borrow more cheaply.