Blue Owl Unable to Arrange Financing for a $4 Billion Data Center
Business Insider • • business
Key Points:
- Blue Owl Capital failed to secure financing from lenders for a $4 billion data center project in Lancaster, Pennsylvania, co-developed with CoreWeave, an AI cloud computing provider with a below-investment-grade credit rating.
- The project is already under construction and fully funded by Blue Owl, which disclosed a $500 million bridge financing obligation through March 2026, but the inability to raise additional debt highlights lender caution toward AI companies with risky credit profiles.
- CoreWeave plans to invest up to $6 billion in the data center, leasing an initial 100 megawatts of capacity with potential expansion to 300 megawatts, while Blue Owl and partners committed $4 billion for construction separate from CoreWeave's investment.
