JP Morgan has underwritten a roughly USD 1bn construction loan for an EdgeConneX data center under lease with CoreWeave, according to two sources familiar with the matter.

The loan was structured with pricing of SOFR+ 375bps, the sources added.

The bank has sought to syndicate the loan to a wider group of investors and has been met with some pushback due to increased perception of risk tied to CoreWeave, according to the sources.

Executives from CoreWeave, which carries sub-investment grade ratings, have been touting a lower cost of capital following its IPO and a series of capital structure moves. Data center developers that lease to CoreWeave have also referenced the cost-of-capital story and its impact on their ability to finance projects.

In August, CoreWeave announced that it had reduced the cost of its non-investment grade debt by 900 basis points compared with previous financings, closing a delayed-draw term loan at SOFR plus 400 basis points.

But that decline reversed course starting in early November, when concerns of an AI bubble crept into public markets, including CoreWeave’s equity and unsecured bonds. CoreWeave also made cuts to its revenue and capital expenditure forecast for 2025, blaming a third-party data center developer.

Of note, CoreWeave unsecured bond yields have gapped out to over 10%, a significant widening from yields of 7.85% in early October. Specifically, its USD 2bn of unsecured notes due 2030, issued in May, are trading at 94 cents on the dollar for a yield of 10.945%, according to data from Finra.

Meanwhile, other commercial banks have shied away from underwriting data centers leased to CoreWeave, two additional banking sources said.

JP Morgan declined to comment. Representatives of CoreWeave and EdgeConnex did not respond to requests for comment.

EQT-backed EdgeConnex is pursuing a USD 1bn data center project with a natural gas microgrid in New Albany, Ohio.

The company is also developing a data center near Austin, TX, with filings from last year showing cost estimates for a four-building campus at USD 1.4bn.

In Georgia, a local planning commission recently denied land use requests tied to EdgeConneX’s proposed 481 MW data center, estimated to cost USD 10bn.

NPM data lists 32 entries for EdgeConneX, with data centers in operational, planning, and construction phases.