Prof G Markets · Monday, July 27, 2026
Big tech companies are using Special Purpose Vehicles (SPVs) to finance data centers, thereby offloading risk. Instead of issuing their own debt, they create shell companies into which data center financing is placed, with private credit funds providing the financing.
“essentially what is happening here is the big tech companies instead of issuing their own debt, they are creating what are known as data center SPVs, special purpose vehicles.”
“And these special purpose vehicles are basically these shell companies where the data center financing isn't provided through the bond sales of the tech company, but it's provided through someone else in most cases, private credit funds.”
“So instead of Google going out and making a bond sale, which would have major implications for its own borrowing costs and its own financial health, see above Oracle. They'll slice and dice that debt, they'll offload it into the SPV and the private credit fund, they provide the financing and Google rents the compute from the data center.”