ING Moves to Dump $500 Million in Data Centre Loans as AI Investment Risks Mount

Dutch banking group ING is looking to sell a portfolio of data centre loans worth approximately $500 million as it reassesses its exposure to the artificial intelligence infrastructure sector.

The bank has reportedly launched a competitive bidding process covering 12 loans, with prospective buyers required to submit offers of at least $10 million.

Bids are expected by November 19, with the sale covering financing linked to several data centre operators and facilities.

Stargate-Linked Facility Included in Portfolio

One of the loans being offered is valued at $25 million and is connected to a large data centre facility in New Mexico.

The facility forms part of the Stargate project, a major artificial intelligence infrastructure venture backed by OpenAI, SoftBank Group and Oracle.

The portfolio also includes debt associated with established data centre operators Vantage Data Centers and CyrusOne.

Technology Market Selloff Raises Investment Concerns

ING’s planned sale comes during a period of volatility across the technology sector, with chipmakers and companies providing infrastructure for artificial intelligence facing a broader market selloff.

Investor concerns have included the possibility of tighter regulation of artificial intelligence and major technology companies following a Democratic victory in the United States midterm elections.

The market correction has reportedly reduced the combined market capitalisation of S&P 500 companies by an estimated $3 trillion.

Data Centre Companies Record Sharp Share Price Declines

The downturn has also affected publicly traded companies operating in the data centre sector.

Applied Digital, Cipher Digital and IREN have each recorded share price declines exceeding 14% during the market selloff.

The declines have reflected changing investor sentiment towards companies involved in providing infrastructure for artificial intelligence and other high-performance computing services.

ING Seeks to Transfer Exposure to Other Investors

The volatility surrounding technology stocks and AI infrastructure spending has increased the risks associated with long-term data centre financing.

ING’s decision to market the loans would allow the bank to exit some of its existing exposure or transfer the associated risks to investors willing to take on the financing.

The competitive sale process is expected to conclude with bids submitted by November 19.