The boom in AI and data center construction, partly driven by Bitcoin mining activities, is being financed through high-yield bonds. This trend indicates the impact that finance costs have to offer to the AI infrastructure development sector.
According to the Energy Mag newsletter, companies in the AI data center development industry have raised approximately $33 billion in long-term senior notes over the last 12 months. The amount does not include convertible bonds. Senior notes have different structures and are usually evaluated independently.
The finance costs for the AI data center development industry are high. Utilities and energy companies are known to borrow at interest rates ranging between 4% and 5%. Companies associated with AI data centers and crypto operations borrow at interest rates ranging between 7% and 9%.
High-Yield Debt Costs Remain Elevated
According to Janus Henderson Investors, BofA Global Research reported that the average coupon for new U.S. dollar high-yield debt was near 7.2% as of year-end 2025.
The average coupon ranged between 8% and 9% during 2023. This may be due to changing market conditions but does not change the higher risk profile of the sector.
Mining companies for digital assets are responsible for many of the highest-priced issuances. The mining companies have transitioned to AI infrastructure. The capital for these companies remains relatively expensive. TheEnergyMag reported on several of these recent issuances.
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Core Weave issued bonds with 9.25% and 9% in May and July 2025. Applied Digital issued debt with a 9.2% interest rate. TeraWulf priced its notes with a 7.75% coupon. Cipher Mining issued bonds with 7.125% and 6.125%.
Source: TheEnergyMag
Lenders Split Infrastructure From AI and Bitcoin Projects
The Energy Mag stated that lenders still distinguish between traditional infrastructure and AI and Bitcoin-related development. It noted that “regulated load and contracted generation are still classified as infrastructure.”
It also wrote, “AI and Bitcoin-related projects, even with long-term contracts, remain classified in the growth credit bucket.”
There are still concerns about overspending and overcapacity issues. The AI data center build-out remains one of the most prominent trends in the economy. It still has strong interest from the financial community.
This trend continued Wednesday when Nvidia announced significant gains for the fourth quarter of last year. Profit climbed 94% from last year. Revenue climbed 73% to $68.1 billion. Net income reached $43 billion.
Bitcoin mining companies are planning about 30 gigawatts of new power capacity, aimed at AI workloads. The new capacity is aimed at AI workloads. Many projects remain in development or early planning. The industry continues to signal that AI infrastructure is a top priority.
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