Overview
- Eagle Point Credit Management finalized a $1.3 billion private credit mezzanine loan on Wednesday for the Hubbard, Texas data-center project.
- The mezzanine sits under a reported roughly $16 billion project package that is led by a bank syndicate arranged by Morgan Stanley and backed by a Google guarantee on the senior debt.
- Nexus Data Centers plans a 2,900-acre campus in Hubbard with Anthropic as the anchor tenant and an on-site gas-fired power plant sized to supply sustained multi-gigawatt compute demand.
- With the mezzanine closed, Nexus is positioned to proceed with development while sponsors expect to explore long-term refinancing options such as bond issuance that would require a credit rating.
- The project will become one of the largest U.S. AI data-center campuses and concentrates commercial and financial exposure with a few major firms, while using on-site gas power to avoid slow local grid upgrades and speed build-out.