Tighter Credit for AI Infrastructure Pushes New Data Center Loan Rates Above 10%

Borrowing for artificial intelligence infrastructure is becoming more expensive as lenders signal that the credit market is nearing its capacity for new debt, with at least 18 data center loans now requiring annual returns of over 10% to secure funding. The credit squeeze has hit smaller GPU rental providers the hardest, contributing to a selloff in October that saw shares of CoreWeave, IREN, and Nebius each drop more than 30%, while 5-year credit default swaps for Meta and Nvidia recently hit all-time highs.