CoreWeave stock tumbles 12% on data center financing concerns
CoreWeave shares fell 12% following a Business Insider report that Blue Owl Capital failed to secure financing for a $4 billion data center project in Pennsylvania that CoreWeave will occupy.
According to the report, lenders showed limited interest in the Lancaster facility, located 80 miles west of Philadelphia, with one lender citing concerns about CoreWeave’s creditworthiness as the reason for passing on the deal. CoreWeave holds a below-investment-grade rating of B+ from S&P Global Ratings, News.Az reports, citing Reuters.
A senior executive at a large specialty lender told Business Insider the firm declined to participate in the financing, stating: "We saw it. We passed."
Blue Owl Capital, which is co-developing the project, said it had "considered" third-party financing for the Lancaster facility "as we would with any transaction as we explore alternatives before choosing the most attractive path forward." The company added that the project is already under construction and "is fully funded, on time, and on budget."
It remains unclear whether Blue Owl is funding construction entirely from its own capital. If the company cannot raise debt for the development, it could face a substantial cash outlay to complete the data center’s construction.
By Faig Mahmudov
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