Fleet Data Centers, the data center development arm of Tract, is seeking to raise billions of dollars to build out a campus in Reno, Nevada, for a major tenant.

The companies this week announced the pricing of $3.8 billion aggregate principal amount of 5.875 percent senior secured notes due in 2031.

The proceeds will be used to finance a portion of the development and construction of a 230MW utility capacity (200 MW critical IT) turnkey data center and electrical substation on a 252-acre property in Storey County, Nevada.

The project has been 100 percent leased to an unnamed “AA- investment grade rated tenant with a market cap in excess of $3 trillion” on a 197-month (16.4-year) ‘triple net’ (NNN) lease.

Companies with a market cap above $3 trillion are few, with only Nvidia, Apple, and Google parent Alphabet currently above that threshold.

While the companies have not specified the tenant, reports surfaced last week suggesting that Nvidia was the company set to lease the development.

“This transaction sets a new benchmark for the data center sector — the highest-rated, largest issuance, highest loan-to-cost, and tightest pricing for any single data center high-yield bond project financing to date,” Fleet said on LinkedIn.

Fleet’s fund, Fleet Data Centers I, LP (Fleet I), announced the pricing via its wholly-owned subsidiary, SV RNO Property Owner I, LLC.

Founded by former Cologix CEO Grant van Rooyen, Tract first announced plans to develop a property in Storey County, Nevada, in October 2023, acquiring further parcels of land in June 2024, bringing its total land ownership in the area to more than 11,000 acres.

Tract aims to develop ‘master-planned’ data center parks, getting sites zoned, powered, and shovel-ready for other companies to develop data centers on. It then launched Fleet to actually build data centers in those parks and other sites not owned by Tract.

Fleet is targeting large-scale projects above 500MW. This is the company’s first confirmed development.

Nvidia runs its own data centers and gets additional capacity by leasing space from cloud providers such as Amazon Web Services and Microsoft Azure. The company has also signed deals with neoclouds, including CoreWeave and Lambda.