ING Seeks Buyers for $500M AI Data Center Loan Portfolio Amid Market Concerns

ING is reportedly seeking buyers for a portfolio of 12 data center loans worth around $500 million, including a $25 million loan linked to the Stargate project in New Mexico. The auctions are part of a broader trend where banks distribute credit risks tied to artificial intelligence infrastructure expansion. Interested investors must bid at $10 million or more by November 19 through a bids-wanted-in-competition (BWIC) process.

The loans involve projects connected with OpenAI, SoftBank, Oracle, Vantage Data Centers, and CyrusOne. This move reflects increased caution among banks as concerns rise about the debt load fueling AI data centers and the potential for lower investor returns. The recent Democratic victories in the U.S. midterms have heightened fears of regulatory moratoriums or restrictions on data center construction in some states.

These developments contributed to a 5.5% drop in the Nasdaq Composite Index on Thursday, placing that index in correction territory. Experts suggest banks may continue selling these loans to manage risk and preserve liquidity, particularly if construction delays and compute capacity constraints pose ongoing uncertainty. The ING loan sale offers private credit firms, asset managers, and insurers a chance to acquire assets for potentially higher returns.

This matters for investors because the distribution of these loans and possible construction moratoriums could affect AI infrastructure growth, influencing financing costs and market valuations of related companies. The November 19 bid deadline marks a critical date for assessing market appetite for this type of credit exposure tied to AI projects.