A group of banks led by Morgan Stanley is preparing to offload approximately $15 billion in debt linked to a large-scale data centre project in Hubbard, Texas, leased to artificial intelligence company Anthropic. The move reflects growing caution among Wall Street lenders about maintaining extensive exposure to AI infrastructure financing on their balance sheets.

The debt arises from loans committed to a 2,000-acre data centre campus currently under construction, developed by Nexus Data Centers with backing from Google. The banks plan to refinance the loans by tapping the bond market shortly after the debt facilities are drawn down, according to individuals familiar with the situation. Utilizing the bond market allows for long-term financing at greater speed and often lower costs than traditional bank loans, a factor that has made it increasingly appealing for large AI-related infrastructure projects.

For banks, divesting this debt helps reduce their concentration risk in the AI sector and frees up capital to support other lending activities. The expanding financial demands of AI build-outs have placed significant strain on the traditional bank-focused market for infrastructure financing, which historically supported projects such as gas pipelines and airports.

This refinancing effort follows a broader pattern within the industry. Over the past year, several Wall Street banks have sought buyers for over $50 billion in construction debt for various data centre projects, including those leased by Oracle. Some lenders have also pursued risk-transfer mechanisms to mitigate their exposure.

The planned $15 billion debt package is expected to be structured through multiple bond issuances. This approach aligns with the underlying loans’ delay-draw feature, which permits Nexus Data Centers to access funding incrementally as key construction milestones are met. Additionally, parts of the debt may be refinanced through the leveraged loan market.

Although Google provides a financial backstop for the project, this guarantee only comes into effect once the data centre is fully completed. As a result, the bonds are likely to hold a speculative-grade rating, reflecting investor exposure to risks such as construction delays and cost overruns.

The data centre will be equipped with Google’s custom Tensor Processing Unit (TPU) chips, which are funded separately from the facility's construction costs. The rise of numerous data centre developments in Texas has sparked concerns about potential strains on regional power and water resources, alongside increases in utility expenses.

Neither Nexus Data Centers nor Morgan Stanley offered comments on the refinancing plans. Anthropic and Google also declined to respond to inquiries.