The continued AI arms race, which has tech companies spending a projected $2.5 trillion this year alone, may have bond investors finally saying enough is enough.
Meta is learning this first hand
The company, part of the “Magnificent 7,” is looking to raise capital for its latest $12 billion data center deal in El Paso, Texas. The nearly one-gigawatt data center project is preparing to sell corporate bonds as early as July 27 through a special purpose vehicle owned by BlackRock, according to the Financial Times. Must Read – Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one – Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP – Millionaires under 43 hold only 25% of their wealth in stocks.
Here’s where their money is actually going In October 2025, Meta secured a record $27 billion corporate bond sale for its “Hyperion” data center project in Louisiana. The difference now is investors are demanding greater returns, as they look to offset the growing AI exposure in their portfolios amid some worries of an AI bubble. According to the Financial Times’ reporting, BlackRock and Meta are offering yields north of 7% in initial discussions.