Investors are demanding higher premiums for the $14 billion in bonds issued for an Oracle-backed data center project, amid concerns over a flood of artificial intelligence-related debt entering the market. The project aims to raise funds for a 1-gigawatt data center in Saline Township, Michigan, and is part of Oracle's $300 billion agreement with OpenAI. Some investors have questioned Oracle's ability to provide sufficient collateral, leading to demands for higher yields and greater credit protection. However, few expect this to derail the deal. Large tech companies have borrowed over $100 billion in global bond markets this year to compete in the AI sector, sparking investor concerns over capital expenditures and potential bubbles. The data center, built by Related Digital, will have its debt issued by a special purpose entity, helping to alleviate market concerns about Oracle's rising debt burden. If successful, the deal could pave the way for a new wave of financing for similar project-level bonds. The bond issuance is expected to take place in the 144A market in the coming weeks, with final pricing and terms still under negotiation. Some investors hope to capitalize on quick profits. PIMCO is expected to be the anchor investor, with Blackstone providing approximately $2 billion in equity investment, while Blue Owl Capital has not proceeded due to stalled negotiations. Project bonds can offer longer-term financing, and large projects are now turning to other debt investors.