ING is reportedly seeking buyers for a portfolio of 12 data center loans worth approximately $500 million through a competitive bidding process, with bids due by November 19 [1]. The auction includes a $25 million piece linked to the Stargate project involving OpenAI, SoftBank, and Oracle, as well as loans tied to Vantage Data Centers and CyrusOne [1]. This sale reflects a broader trend of banks distributing credit risk tied to AI infrastructure financing through a lend-to-distribute model, with buyers ranging from private credit investors to asset managers and insurers seeking higher returns [1].
The loan sales come amid significant market turbulence triggered by Democrats' midterm election victory, which has raised concerns about potential data center construction moratoriums and regulatory restrictions [1][2]. On Thursday, November 6, 2026, the tech-heavy Nasdaq Composite Index closed down 5.5%—its worst day since April 2025—sending AI-related stocks into sharp decline [1]. Major semiconductor and AI companies experienced substantial losses: Nvidia fell 9.3%, AMD shed 17.3%, Microsoft dropped 3.6%, Micron fell 17.5%, Broadcom declined 10.4%, Tesla dropped 10.8%, and SpaceX fell 9.1% [2]. Cloud computing companies serving AI infrastructure were hit particularly hard, with Nebius dropping 15%, Irenfell falling 17%, and CoreWeave declining 10% [2].
The political uncertainty compounds existing concerns about the AI infrastructure build-out. Between January 2024 and May 2026, at least 46 AI data center projects across 20 U.S. states, representing more than $170 billion in announced investment, were blocked, withdrawn, or stalled following community opposition [2]. Kyle Rodda, senior financial market analyst at Capital.com, noted that "the regulatory and political risks arise at a time when the proverbial AI trade was already on shakier foundations," with earnings season showing "overall disappointment" and Magnificent Seven results "undershooting growth expectations and flashing warning signs that the pace of AI spending is slowing down" [2].
Experts suggest the market volatility reflects deeper concerns about AI infrastructure financing and returns. Hank Calenti, global markets strategist at SMBC, indicated that banks' decisions to sell loans will depend on "the cost (discount received) versus the benefit of exiting to free up cash for further lending," noting this could represent either "business as usual" or "financiers looking to exit before the door shuts" [1]. Pruksa Iamthongthong, head of APAC equities at Aberdeen Investments, warned that "near-term volatility could continue as the market assesses potential delays to U.S. data center construction and constraints around compute capacity," particularly given increased scrutiny of data center development at a time when investors were already questioning the financing and returns behind AI capital spending [1].
CONCLUSION
The combination of ING's $500 million data center loan sale and the sharp market selloff following Democrats' midterm victory signals growing concerns about the sustainability and profitability of the AI infrastructure boom. Political risks around data center construction moratoriums, coupled with existing questions about AI spending returns and high interest rates, are prompting banks to distribute credit risk and investors to reassess AI-related positions. The market faces potential continued volatility as regulatory clarity emerges and the true returns on massive AI capital expenditures become apparent.