NVIDIA-linked center raises $4.59B

Fleet Data Centers said Wednesday it priced $4.6 billion of senior secured notes for a fully leased data center project in Storey County, Nevada. (einnews.com) (bloomberg.com) The borrower is PR RNO Property Owner I, a Fleet Data Centers I vehicle backed by Tract Capital. Bloomberg reported the site is tied to Nvidia and the notes were sold at 99 cents on the dollar to yield 6.74%. (einnews.com) (bloomberg.com) Fleet said the proceeds will fund part of the development of a turnkey campus with 230 megawatts of utility capacity, 200 megawatts of critical information-technology capacity, and an electrical substation on a 517-acre site. Some proceeds will also reimburse prior equity used to buy the land and cover fees. (einnews.com) The lease is the core of the financing. Fleet said the project is 100% leased under a 197-month triple-net agreement to an AA-minus rated tenant with a market value above $3 trillion. (einnews.com) Bloomberg reported in February that Nvidia was expected to lease the Nevada campus, and Data Center Dynamics said the initial term was 16 years with options for two 10-year extensions. (bloomberg.com) (datacenterdynamics.com) This is the second big bond financing tied to the same Reno-area build. Fleet announced a $3.8 billion senior secured notes deal on February 13, and Bloomberg said investor orders then reached about $14 billion. (fleetdatacenters.com) (bloomberg.com) The pricing also moved up. Fleet’s February notes carried a 5.875% coupon, while Bloomberg reported this week’s five-year sale yielded 6.74%, a higher cost of debt even as the deal size increased. (fleetdatacenters.com) (bloomberg.com) Tract has been building its Nevada position for years. The company said in January 2024 that it was aligning renewable generation and battery storage with its Nevada and Utah data center campuses, and Data Center Dynamics reported Tract had amassed more than 11,000 acres in Storey County by mid-2024. (businesswire.com) (datacenterdynamics.com) The deal closes only if customary conditions are met, but the message from the financing is already clear in the documents: lenders are still willing to fund giant single-tenant AI campuses when the land, power plan, and lease are lined up. (einnews.com)