AI debt concerns grow as ING reportedly seeks buyers for $500 million of data center loans

ING is reportedly seeking buyers for a portfolio of 12 data center loans worth around $500 million, joining a broader push by banks to distribute credit risk tied to the artificial intelligence infrastructure build-out.The auction is said to include a $25 million piece linked to the Stargate project in New Mexico, which involves OpenAI, SoftBank and Oracle, as well as certain other loan assets involving Vantage Data Centers and CyrusOne, Bloomberg reported Friday, citing people familiar with the matter. ING will hold a bids-wanted-in-competition, or BWIC, auction process, with bids sized at $10 million or more due by Nov. 19, according to Bloomberg. A BWIC is a competitive process for investors to bid on pieces of a loan portfolio.Stock Chart IconStock chart iconING.An ING spokesperson declined to comment.Why banks are sellingThe sale highlights a growing market for banks to move data center loans to private credit firms, asset managers and insurers as financing for the AI boom expands. "We think near-term volatility could continue as the market assesses potential delays to U.S. data center construction and constraints around compute capacity."Pruksa IamthongthongHead of APAC equit...