AI campus pro formas built on sales tax exemptions and property tax abatements face a new federal threat: Sen. Bernie Moreno's RECLAIM Act would levy an excise tax equal to the full value of any state or local incentive for campuses with 100 MW or more of contracted peak power, and bar federal incentives outright. In Denton, Texas, a 4-0 council vote ended by-right data centers, adding a specific use permit, a 300-foot setback and up-front PUC and ERCOT approvals, with an Oct 27 hearing on a 90-day moratorium. Subsidy and entitlement for AI data centers are both getting harder to underwrite.

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Sources:
https://www.politico.com/news/2026/10/15/moreno-data-center-incentive-tax-bill-01120599
https://www.moreno.senate.gov/wp-content/uploads/2026/10/Data-Center-Bill.pdf
https://www.forth.news/lists/ussen-moreno/Cg4b9yJsf22mQua7TPUgD
https://focalnews.org/politics/ohio-senators-reclaim-act-would-erase-public-incentives-for-data-centers
https://dentonrc.com/news/council-amends-development-code-to-make-it-tougher-to-build-a-data-center-in-denton/article_ea8be9ab-c200-4f86-a3ff-8e4971008b4e.html
https://denton.city/article/data-centers-now-need-a-council-approved-permit-after-a-4-0-vote-and-one-application-was-already-turned-away
https://txgazette.com/articles/denton-votes-4-0-to-require-council-permit-for-data-centers

CoreWeave's roughly $50 billion AI infrastructure debt stack saw five-year CDS peak above 1,140 basis points and its 9.75% 2031 notes yield about 15.8% (Reuters saw as high as ~16%), the zone markets treat as credit distress even with hyperscaler backlog still cited as support. On the landlord side, Fermi's Oct 14 TensorWave fact sheet puts $6.5 billion of contracted revenue on 222 MW total power and 156 MW critical IT at Project Matador, but the Oct 31 close still needs project finance and AMD credit support only after construction and rent start. Capital still clears when a lease and credit wrap are clear; leveraged operator debt is clearing mid-teens.

Reach out to the AI Consulting Network: https://www.theaiconsultingnetwork.com/

Sources:
https://www.cnbc.com/2026/10/15/coreweave-credit-default-swaps-hit-distress-levels-as-investors-sour-on-ai-debt.html
https://ca.marketscreener.com/news/cost-of-ai-default-insurance-spikes-as-data-centre-confidence-wobbles-ce785dd3d888f127
https://www.investing.com/news/stock-market-news/factboxcoreweaves-ai-contracts-and-the-lenders-financing-its-buildout-4952427
https://americanbuildout.com/credit-stress-builds-around-ai-data-centers-as-construction-continues/
https://www.bnnbloomberg.ca/investing/2026/10/15/why-are-credit-default-swaps-unnerving-ai-investors/
https://www.stocktitan.net/sec-filings/FRMI/8-k-fermi-inc-reports-material-event-ef05d09e0780.html
https://blockspace.media/insight/fermi-tensorwave-lease-project-matador/

JPMorgan and Goldman Sachs underwrote only the $1.3 billion term loan in Volta's $5.012 billion package, leaving the roughly $3.7 billion GPU tranche without bank underwriting as yield talk runs at 11% or more on debt tied to Bitdeer's 121 MW Tydal, Norway AI campus lease. With commitments due 5 p.m. ET on Oct 14, the pricing is still talk, not a final print, but it shows what lease-linked AI campus debt costs right now. On the power side, AEP plans to invest about $4 billion in 702 MW of Bloom fuel cells near Cheyenne, Wyoming, under a 20-year Google power purchase agreement.

Reach out to the AI Consulting Network: https://www.theaiconsultingnetwork.com/

Sources:
https://pitchbook.com/news/articles/volta-launches-5b-leveraged-loan-package-to-support-data-center-lease-gpu-capital-expenditures
https://www.semafor.com/article/10/13/2026/voltas-5-billion-debt-deal-is-a-pulse-check-on-the-ai-financing-boom
https://news.bloomberglaw.com/banking-law/jpmorgan-goldman-curb-exposure-on-5-billion-volta-ai-loan-1
https://vector.news/articles/banks-hunt-buyers-for-5-billion-ai-loan-50015a8061
https://www.globenewswire.com/news-release/2026/08/04/3338255/0/en/bitdeer-announces-4-7-billion-16-year-ai-hpc-data-center-lease-for-tydal-norway-campus.html
https://www.aep.com/news/stories/view/12314/
https://www.prnewswire.com/news-releases/aep-advances-innovative-energy-solution-for-google-with-702mw-of-bloom-fuel-cells-302907658.html