Data centers linked to Alphabet Inc.’s Google are seeking to raise $5.7 billion from a junk-bond sale, in what would be the largest deal of its kind to finance the artificial intelligence buildout boom.
Morgan Stanley kicked off marketing on Wednesday, and is expected to price the notes as soon as this week, according to a person with knowledge of the matter.
Proceeds will fund the construction of two data centers on a campus in Sullivan County, Indiana, which will be leased to cloud-computer startup Fluidstack Ltd. and backstopped by Google, the person added.
The rapid expansion of AI has created an unprecedented shortage of data-center space, graphics-processing unit chips and quick access to electricity to power it all. To fund all of that, companies are tapping every corner of the debt markets from junk bonds to project finance.
At $5.7 billion, the deal marks the largest US dollar junk bond to test investor demand for data-center debt, and the biggest to be led by one Wall Street institution — Morgan Stanley — according to Bloomberg-compiled data.
The new deal would mean the bank beats its own prior record for a sole-led high-yield bond offering for cryptocurrency miner TeraWulf Inc., a deal that was also backstopped by Google.
A representative for Morgan Stanley declined to comment, while those for Google and Fluidstack didn’t respond to requests for comment.
A joint venture owned by Next Frontier LLC and Fluidstack is selling the new five-year notes. The bonds will be issued by Meridian Arc HoldCo LLC, as the JV is formally known, the person said.
Fluidstack helps develop data centers through building and operating high-performance computing infrastructure, an area of business that is booming amid the rise of artificial intelligence. The firm recently announced a $50 billion deal with Anthropic to build custom data centers for the large language model maker.
In August, Fluidstack chose to expand its use of a TeraWulf-operated data center in New York. Around the same time Google increased its backstop for Terawulf to $3.2 billion to support debt financing. The technology giant also boosted its pro forma equity stake in TeraWulf to around 14%.
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Published on April 16, 2026