(Bloomberg) — BlackRock Inc. began marketing $12.3 billion of high-grade bonds to fund a Meta Platforms Inc. data center project, testing investor appetite amid growing concerns about excessive AI infrastructure spending.

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Sopaipilla Investor, a holding company tied to BlackRock, is offering a single tranche of notes due in 2048, according to a person familiar with the matter. Price talk is a premium of about 2.875 percentage points over Treasuries, the person said, asking not to be identified because they aren’t authorized to speak publicly.

Proceeds from the sale will fund a data center campus in El Paso, Texas, expected to provide as much as 1 gigawatt of computing capacity for artificial intelligence workloads. BlackRock subsidiaries Global Infrastructure Management and HPS Investment Partners hold an 80% stake in the project, with Meta owning the remaining 20%.

JPMorgan Chase & Co. and Morgan Stanley are running the offering.

https://finance.yahoo.com/markets/stocks/articles/blackrock-kicks-off-12-3-130957694.html