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The AI ‘credit card’ is getting costlier as CoreWeave bond yield tops 16%
CoreWeave’s borrowing costs have risen as investors weigh whether political and financial pressures could slow the expansion of AI data centres. The concern matters because companies are relying on substantial borrowing to build the infrastructure behind AI, while investors are looking for evidence that spending will generate enough cash to sustain it.
Goldman Sachs says possible data-centre moratoriums could affect 45% of planned US capacity, much of it in Texas, though Texas governor-elect Gina Hinojosa has called for a pause until community protections are passed. AI borrowing is still growing: five bond deals worth $67 billion have been announced since 29 October, and Goldman forecasts $440 billion in hyperscaler debt next year. Bank of America expects AI-related credit issuance to reach $685 billion in 2027 before falling to $531 billion in 2028; it says a slowdown in projects could reduce borrowing needs.
In short
- CoreWeave’s bond yield has topped 16%.
- Data-centre pauses could affect 45% of planned US capacity.
- AI credit issuance may peak in 2027, then decline.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A pause on some data-centre projects could give communities time to secure protections around local impacts and allow regulators to assess whether infrastructure plans are sustainable. Investors also have reason to question whether rapid borrowing is prudent until companies show that AI revenues can support the debt and that planned capacity can be built and used.
The case against
Restricting or delaying data-centre construction could make it harder to meet growing demand for computing and could discourage investment in infrastructure that businesses expect to need. If projects slow, companies may borrow less, but uncertainty over approvals and local rules could also raise financing costs and weaken confidence in long-term investment.
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