--- title: Cipher Digital raises $810 million in junk bonds to... description: Cipher Digital is raising $810 million through a junk-bond sale at 6.25% yield to fund its Stingray data centre in West Texas, which Amazon will lease for 15... canonical: https://daily.dev/posts/cipher-digital-raises-810-million-in-junk-bonds-to-build-another-amazon-data-centre-in-texas-4luguyql7 twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Cipher Digital raises $810 million in junk bonds to build another Amazon data centre in Texas | daily.dev og:description: Cipher Digital is raising $810 million through a junk-bond sale at 6.25% yield to fund its Stingray data centre in West Texas, which Amazon will lease for 15... og:url: https://daily.dev/posts/cipher-digital-raises-810-million-in-junk-bonds-to-build-another-amazon-data-centre-in-texas-4luguyql7 og:image: https://api.daily.dev/og/posts/4LuGUYqL7.png og:image:alt: Cipher Digital raises $810 million in junk bonds to build another Amazon data centre in Texas og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Cipher Digital raises $810 million in junk bonds to build another Amazon data centre in Texas **[The Next Web](https://daily.dev/sources/tnw)** · 4 min read · 0 upvotes · 0 comments ## Summary Cipher Digital is raising $810 million through a junk-bond sale at 6.25% yield to fund its Stingray data centre in West Texas, which Amazon will lease for 15 years under a triple-net agreement. This is Cipher's third high-yield bond offering in four months, following a $2 billion Black Pearl deal in February. The financing structure ties amortisation to project cash flows rather than fixed repayment schedules, resembling project finance more than traditional corporate debt. The deal highlights a two-track AI infrastructure debt market: hyperscalers like Amazon borrowing at investment-grade rates while smaller data centre developers tap junk markets at 6–8% yields. Hyperscaler lease commitments effectively backstop these high-yield instruments, making them lower-risk than the 'junk' label implies. Combined 2026 AI capex across the five largest hyperscalers is on track to exceed $650 billion, with analysts projecting the sector may need up to $1.5 trillion in additional debt over coming years. ## Full article daily.dev links to this article rather than hosting it. 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