Startup Volta is raising $5 billion of debt for a data center in Norway at a rate of at least 11%, as some investors complain of oversupply
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Money for SI data centers is still available, but it is getting more expensive and lenders are demanding extra guarantees.
According to Semafor, citing sources, the deal is being arranged by JPMorgan and Goldman Sachs: it is expected to price this week at a rate of at least 11%, unusually high for data centers, anchored by a $1.5 billion order from Apollo; terms may change. Volta was founded in February and this is its first major project. Some investors were put off by the lack of a track record and by reliance on Anthropic, which is buying a large share of the computing capacity: in their view its obligations are not fully defined. To ease doubts, the rate will fall if Anthropic gets an investment-grade credit rating. JPMorgan and Goldman have also placed a $1.3 billion term loan. According to investors and bankers, deals are still closing but at higher rates and on tougher terms; according to Morgan Stanley, September was the second-weakest month of the year for SI project financing volume.
Sources 1