It is reported that ING is seeking buyers for a portfolio of 12 data center loans worth approximately $500 million. This also contributes to a broader trend in the banking industry, which is to diversify the credit risks associated with artificial intelligence infrastructure construction.
Bloomberg reported on Friday, citing sources familiar with the matter, that the auction included a $25 million loan tranche related to the New Mexico Stargate project. This project involves OpenAI, SoftBank, and Oracle. In addition, the auction also included some other loan assets related to Vantage Data Centers and CyrusOne.
According to Bloomberg, ING will be auctioned through a “bid bidding” ( BWIC ) process. Bids of $10 million or more must be submitted by November 19th. BWIC is a process that allows investors to make competitive bids for certain assets within a loan portfolio.
ING Spokesperson refuses to comment.
Why do banks sell?
This sale highlights a growing market: as the financing demand for the AI craze rises, banks are shifting data center loans to private credit companies, asset management firms, and insurance companies.
SMBC Global Market Strategist Hank Calenti stated that investment banks typically adopt a 'post-issuance distribution' (lend-to-distribute) model for such loans.
He said, "Buyers may include private credit investors, asset management companies, and insurance institutions. They purchase these assets because they expect to obtain higher returns."
ING As of this sale, concerns are growing in the market regarding the surge in debt related to the construction of AI and the possibility that investor returns may be disappointing.
Following the Democratic Party's overwhelming victory in the mid-term elections in the United States, these concerns have further intensified, as it may imply that some states could impose moratoriums or stricter restrictions on data center construction.
Perception of the risk of construction slowdown in the market triggered a plunge in AI related stocks on Thursday. The Nasdaq Composite Index, which is dominated by tech stocks, closed down 5.5% on that day, recording its worst single-day performance since April 2025 and falling into a correction zone.
In an email sent to CNBC, Calenti stated: 'Whether banks will sell off more related assets due to concerns about the suspension of the construction of the AI data center depends on the trade-off between the cost (the discount they are willing to accept) and the cash released after exiting, which can then be used for further lending. The cost also includes explaining the related risk exposures to the board of directors.'
He also said, "This could just be normal business operations, or it could be that the financiers want to withdraw before the door is closed."
Aberdeen Investments The head of Asia-Pacific equities, Pruksa Iamthongthong, stated that the strong performance of the Democratic Party in the elections has exacerbated market concerns that data center development will face stricter scrutiny. At a time when investors are already questioning the financing and returns behind such large-scale AI capital expenditures.
She said, "We believe that as the market assesses potential delays in the construction of data centers in the United States, as well as limitations in computing power capacity, short-term fluctuations may continue."
Wall Street reduces exposure
Earlier this year, it was reported that Wall Street lending institutions, including JPMorgan Chase and Morgan Stanley, were exploring various ways to reduce their risk exposure to data center construction loans.
According to a report by The Financial Times on May 3rd, these methods include privately selling some of the debt to non-bank lending institutions, as well as dealing with exposures through what is known as "significant risk transfer" ( significant risk transfers ). The latter refers to transferring part of the bank's credit risks to investors, thereby freeing up capacity on the balance sheet.
