Morgan Stanley Offers More Junk Debt for Google-Tied Project

Developers of a data center linked to Alphabet Inc.’s Google are tapping the junk-bond market to finance the project in a deal led by Morgan Stanley, extending a borrowing spree powering the artificial-intelligence boom.

A company indirectly owned by cryptocurrency miner TeraWulf Inc. and cloud-computing startup Fluidstack Ltd. is offering $1.28 billion in five-year senior secured notes to finance part of a data center being built in Abernathy, Texas, according to a person familiar with the matter. The deal is expected to price Thursday, the person said, asking not to be identified because the information is private. The bonds may price to yield in the 7.25% area, added the person.