Elk Grove Village Property LLC is seeking to raise $850 million through a junk-bond sale tied to CoreWeave Inc. (NASDAQ: CRWV), joining a broader wave of high-yield issuers funding artificial intelligence infrastructure through debt markets.
Elk Grove is a wholly-owned indirect subsidiary of Prime Data Centers LLC and is developing a build-to-suit hyperscale data center within the Chicago metropolitan area.
The facility has been fully leased to CoreWeave for 15 years, representing approximately $2.2 billion in revenue, according to a person with direct knowledge of the matter.
CoreWeave also holds two renewal options of seven years each, exercisable only with respect to the entire premises and critical IT power.
Under the lease terms, CoreWeave is responsible for substantially all operating expenses, including power, utilities, and taxes.
Net proceeds from the offering will be used to refinance $500 million of existing debt and accrued interest, as well as fund remaining estimated construction costs to complete the facility.
Any remaining net proceeds will be directed toward general corporate purposes, and the principal amount of the notes will amortize on a semi-annual basis.
Prime will guarantee the funds necessary to ensure facility completion if proceeds from the notes and other available funds prove insufficient.
Banco Santander SA is running the bond sale, according to the person, who asked not to be identified as discussions are private.
A representative for Prime declined to comment, while a representative for CoreWeave did not return a request for comment.
Companies tied to AI infrastructure have raised nearly $27 billion from riskier bonds so far this year, according to data compiled by Bloomberg, as demand for data center capacity accelerates.
CoreWeave, part of a group of businesses known as neoclouds, leases access to AI data center capacity to clients including OpenAI, Meta Platforms Inc., and Microsoft Corp.
