ING Reportedly Markets $500m Data Center Loan Portfolio

ING is reportedly offering investors a dozen data-center loans totaling about $500m as lenders seek to move some AI infrastructure exposure off their balance sheets.

Banks frequently arrange large infrastructure loans before selling portions to other investors, enabling them to release balance-sheet capacity and continue lending.

The Dutch lender is marketing the loans through a competitive auction, according to Bloomberg, which cited people familiar with the matter. ING declined to comment on the report.

The portfolio includes a $25m position connected with a New Mexico data center forming part of the Stargate project involving OpenAI, SoftBank and Oracle. Other loans reportedly involve data-center operators Vantage Data Centers and CyrusOne.

Bids of at least $10m are due by November 19. The portfolio consists exclusively of data-center debt.

Hank Calenti, global markets strategist at SMBC, told CNBC that buyers could include private credit investors, asset managers and insurers seeking higher returns.

The sale comes as lenders and investors reassess the rapid growth of borrowing tied to AI infrastructure. JPMorgan Chase and Morgan Stanley have also reportedly considered selling or transferring portions of their exposure to data-center construction.

Concerns have intensified following Democratic victories in the US midterm elections, which have raised the prospect of moratoriums or tighter restrictions on data-center construction in some states.

Calenti said banks would weigh any discount on the loans against the benefit of freeing capital for further lending.

“This could be business as usual, or financiers looking to exit before the door shuts,”  he added.

The pricing of the loans, any discounts sought, and whether any have been impaired have not been disclosed. No prospective buyers were publicly identified in the report.