A large data centre group is planning to issue asset backed bonds in Australia to help fund rapid AI driven expansion, aiming to diversify away from traditional bank loans. This push into local markets could reshape how investors think about risk, returns and tech linked debt.
Right now, the company, backed by a global investment giant and valued at more than $24 billion, is talking with Australian and international investors about a deal expected in the first half of the year. It sits in a sector riding a powerful wave. Demand for data processing and AI infrastructure is soaring across Asia and beyond and Australia’s corporate bond market is emerging as a fresh source of long term funding rather than just a niche sideline for global technology players.
Early indications suggest this single transaction could headline what looks like roughly $10 billion a year in AI and data centre related issuance across Asia as developers and big tech firms seek new pools of capital. Global banks and asset managers point out that US markets alone cannot absorb the estimated $US3 trillion (about $4.2 trillion) expected to be spent on AI infrastructure in the United States by 2028, so borrowers are hunting for depth in every viable currency including Australian dollars, especially where there are stable cash flows from long term leases with major cloud and platform customers.
Stepping back, the move seems to mark the start of a broader pivot where Australia’s bond market, supported by a AAA rated sovereign, solid financial system and relatively attractive yields, becomes part of the regular funding toolkit for AI and digital infrastructure. If calm credit conditions hold and investor appetite stays strong, local markets could see more frequent and larger tech linked deals, although it may take time for domestic investors to grow comfortable with leverage levels, long dated structures and the possibility that Australian dollar funding is not always cheaper once converted back to US dollars for global expansion.
