Investors are being asked to buy $4.54 billion of five-year high-yield notes to help fund a 200MW data centre and on-site substation in Storey County, Nevada, likely to be leased to Nvidia. JPMorgan is leading the syndicate, and the offering follows an earlier $3.8bn junk-bond sale for the same project organised under SV RNO Property Owner 1.

The deal and the debt - The developer is marketing roughly $4.54bn of high-yield notes to fund part of construction for a 200MW data centre and a dedicated substation in Storey County, Nevada. - The notes are five-year maturities and the bank syndicate is led by JPMorgan, according to filings and market notices tied to the offering. - An earlier junk-bond sale for the same project raised about $3.8bn (upsized by $150m in February); some proceeds from the new marketing are intended to reimburse prior equity contributions by Fleet Data Centers and its backers. - The borrower is SV RNO Property Owner 1, a special-purpose vehicle used to isolate project risk; Fleet 1, the developer’s inaugural fund, was expected to contribute to the build-out. The project and the tenant - The planned campus includes a 200MW data centre plus a dedicated substation to supply continuous power for compute-heavy workloads. - Market notes and reporting say Nvidia is likely to be the tenant under an initial 16-year lease. The development is structured as a single-user/wholesale facility rather than a multi-tenant colocation. - Fleet Data Centers targets mega-scale, single-user campuses; Tract Capital Management, the sponsor that owns the land, has acquired more than 11,000 acres in the area since announcing plans in 2023. Legal friction and local context The project has faced litigation from a nearby operator that argued land-use covenants would limit other colocation builds. Tract and Fleet have contended the planned deployment is a single-tenant wholesale/cloud facility and therefore not covered by those restrictions. The dispute has been public and is part of the development record. Tract’s filings and permitting documents note the site is intended as a master-planned data-centre park to streamline utilities, zoning and grid connections for multiple large buildings on a campus footprint. Why this matters The size and structure of the deal — multi‑billion-dollar high‑yield paper tied to a long-duration, single‑user lease — shows investors and banks are willing to underwrite riskier, short‑dated debt to back long-term AI compute demand. That marks a shift from the more common multi‑tenant colocation financings and helps explain why data‑centre projects are drawing jumbo capital raises.

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An investor call for the $4.54bn offering was scheduled for 10 a.m. Eastern.

This article was created with AI assistance.