Meta faces higher borrowing costs in latest $12bn data centre financing

July 24, 2026 - 01:44

A BlackRock-led financing package for Meta's data center expansion has closed at $12 billion, but the deal signals growing investor caution around the tech sector's massive AI infrastructure spending. Sources familiar with the transaction said the borrowing costs came in higher than initially expected, reflecting a shift in sentiment among institutional lenders.

The financing, structured as a private placement, was arranged by a group including BlackRock and several large asset managers. While Meta secured the full amount needed to build out its computing capacity for artificial intelligence workloads, the pricing on the debt was adjusted upward during the syndication process. Investors demanded a premium, citing concerns about the long-term returns on AI-related capital expenditures.

This marks a noticeable change from earlier this year, when similar deals for tech giants were snapped up with little pushback. The higher cost of borrowing suggests that some lenders are starting to question whether the massive spending on data centers and AI chips will generate the promised revenue growth. Meta has been one of the most aggressive spenders in the AI race, committing tens of billions to expand its infrastructure.

The deal also highlights a broader trend: institutional investors are becoming more selective about which tech companies they back with cheap debt. While Meta's strong cash flow and advertising business still make it a relatively safe bet, the rising cost of this financing shows that the market is no longer giving AI spending a blank check.