While I've seen a lot of news lately about SPVs being used to finance data centers off balance, as a non-economist I just cannot wrap my mind around the problem of issuing a 25Y bonds that is tied to purchase of GPUs that have so far proven to be replaced by a new generation every 2-5 years. Assuming that Meta (or any other company for that follow this structure) extend the lease in 4 years, they'll likely want to use newer GPUs, the LLC that owns the data center will have to issue new debt, both to buy the GPUs but also to serve the older debt and so forth. To me it seems that for this to not crumble eventually, the company that leases the GPU (Meta in this case) must either: 1. Be able generate generate profit that converges to a sum which exceeds the debt issued + coupons. 2. Be able to sell those GPUs for profit (can't really see that happening unless a real supply crisis hit the chip industry).

I'm most likely wrong but the choice of tying a bonds with long duration to an asset that rapidly depreciates in value seems to me like something that is likely to fail in some way or another.