Data-center debt refinancing may raise rates and add costs

According to a BloombergNEF report, roughly $13.4 billion of outstanding fixed-rate, U.S. dollar-denominated data center debt is expected to mature in 2027. The report states that if this debt were fully refinanced at bond yields observed in October 2026, debt rates for developers would rise by 2.85 percentage points, increasing spending by at least $380 million, assuming credit spreads remain unchanged. Looking further ahead, the report finds that at least $1 trillion of data center borrowing will come due over the next five years. Debt maturing before 2030 is concentrated among eight companies, with the largest maturities held by developers Vantage Data Centers, Switch, and Databank. The report also notes that while Treasury yields could fall in the coming months, these companies face additional pressures that may shape their borrowing costs, including growing market concern over their heavy debt loads and their heavy reliance on hyperscale cloud providers and the chip sector. No further developments on this refinancing wave have been reported since.