Find XO: AI Data Center Borrowing Costs Rise, A Must-See for Founders (ft.com)

- Meta secured $12 billion to fund its Texas El Paso data center, with bond investors demanding interest rates exceeding 7%. - This rate is about 0.4 percentage points higher than the previous $27 billion raise. - Infrastructure providers can transfer this risk to users through long-term contracts and upfront payments, while startups often mistakenly believe they are getting discounts and end up bearing unused capacity. - It's crucial to first review contract terms that allow exiting even if demand deviates from unit costs.