Blue Owl shopped debt for a CoreWeave data center. Lenders weren't sold.
Business Insider
February 20, 2026
AI-Generated Deep Dive Summary
Blue Owl Capital, a leading player in the data center boom, has faced challenges securing financing for its $4 billion Lancaster, Pennsylvania, project, which is being developed alongside CoreWeave, an AI cloud computing company. Despite efforts to attract lenders, the lack of interest was attributed to concerns over CoreWeave's creditworthiness, highlighted by its below-investment-grade rating of B+ from S&P Global Ratings. While Blue Owl claims the project is fully funded and on track, it remains unclear if the firm has relied solely on its own capital or alternative financing sources. This situation underscores the growing financial risks associated with AI-driven data center investments.
The Lancaster facility, designed to house CoreWeave's AI computing infrastructure, initially secured a $4 billion funding commitment from Blue Owl and its partners, separate from CoreWeave's planned $6 billion investment in the project. However, as lenders have become increasingly cautious about exposure to high-risk AI-focused ventures, Blue Owl's attempts to secure debt financing for the project have reportedly fallen short. This caution reflects broader market concerns about the credit profiles of companies like CoreWeave, which has taken on significant high-interest debt to fuel rapid expansion.
The financing struggles for the Lancaster data center highlight the complexities and risks involved in funding AI infrastructure, a sector that is attracting significant investment but also raising alarms among investors and lenders. While Blue Owl has a history of innovative financing strategies—such as leveraging Meta's strong credit rating for a previous
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Originally published on Business Insider on 2/20/2026