ING is selling a portfolio of 12 data center loans worth around $500 million, according to Bloomberg. The bank is running a competitive bidding process with bids due by Nov. 19, with minimum bid sizes of $10 million.
The portfolio includes a $25 million loan tied to the Stargate project in New Mexico, which involves OpenAI, SoftBank and Oracle. Other loans involve Vantage Data Centers and CyrusOne.
Banks are using this "lend-to-distribute" model to move data center debt to private credit firms, asset managers and insurers. "The buyers can range from private credit investors through asset managers to insurers. They would buy these assets for their expected higher returns," said Hank Calenti, global markets strategist at SMBC.
The sale reflects growing concerns about AI infrastructure debt and potentially disappointing returns. Fears intensified after the Democrats' recent election gains, which could lead to moratoriums or stricter rules on data center construction in certain states. This sparked a 5.5% decline in the Nasdaq Composite on Thursday, its worst day since April 2025.
Calenti noted that banks face a choice between the cost of selling at a discount versus the benefit of freeing up cash for further lending. "This could be business as usual, or financiers looking to exit before the door shuts."
Earlier this year, JPMorgan Chase and Morgan Stanley explored ways to reduce data center lending exposure through private sales and risk transfers, according to a Financial Times report.