Tract Capital Secures $3.8 Billion for Data Center Development Backed by Nvidia
JPMorgan Chase & Co. raised $3.8 billion in junk bonds to fund a data center project led by Tract Capital, backed by Nvidia. The deal attracted over $14 billion in investor orders, reflecting strong demand for data center infrastructure amid a booming AI market.
JPMorgan Chase & Co. has successfully sold $3.8 billion in junk bonds for a data center project led by Tract Capital, which oversees a significant land portfolio exceeding 30,000 acres. The project aims to meet increasing demand for powered land necessary for data centers, with estimates indicating a need for 40,000 acres by 2030.
AI-curated by TheiaTract aims to secure over 22 gigawatts of electricity, supporting the energy needs of approximately 20 million households. However, skepticism exists regarding the company's access to power and profit potential, as competition intensifies for energy resources. The first power delivery is due by October 2027, with Nvidia holding lease termination rights if power delivery milestones are not met.
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