Microsoft-Linked Data Center Bonds Attract $8 Billion in Demand

Data center bonds linked to Microsoft have attracted massive interest, with demand exceeding $8 billion for the 'Project Odyssey' deal.

The bond sale, handled through subsidiaries of QTS Realty Trust, a company backed by Blackstone, will finance a data center project in Georgia.

Despite carrying an investment-grade rating, the bonds offer returns near the upper end of the 6% range, with an expected yield in the low-to-mid 7% range, comparable to junk debt levels.

The deal is being seen as a reflection of the current credit market climate, where investors are demanding better terms due to increased caution and risk awareness.