Kingspan Group has raised €850m from a two-part green bond sale, as the AI data centre build-out has helped the Irish company lift its profit outlook.

The building insulation maker pulled in €3.1bn of final investor demand, falling from more than €4.6bn at the peak, according to a person familiar with the matter. The shorter-term tranche priced at 63 basis points over mid-swaps, while a longer slice of debt printed 95 basis points over, said the person who asked not to be identified.

Kingspan last month raised its full-year trading-profit forecast to €1.13bn from €1.05bn.

Its Advnsys unit which makes materials for data centres saw order intake increase by over 100pc year-on-year.

In August, it acquired BMC Manufacturing – another Irish company that makes data centre equipment – for up to €900m in cash and shares. The cash for the deal was fully funded from its existing credit facilities.

The new debt comes even as concerns linger over the scale of spending on AI infrastructure and data centres as well as growing political opposition which is slowing the sector’s growth. Green investors have also expressed concerns about the environmental impact of data centres, including the growing energy and water demand.

The bonds are expected to be rated BBB by S&P Global Ratings and Fitch Ratings, with proceeds earmarked for eligible green projects. BNP Paribas, Bank of America, ING Bank and UniCredit managed the sale.

Last month Kingspan announced record half-year results and forecast a strong performance for the remainder of the year.

The Irish company said the global tech sector is “blasting forward” and remains “fully detached” from the regular economy and normal building activity.

Across Kingspan’s markets, Europe is “generally stronger”, while the US is “somewhat subdued” except for the “soaring tech sector”, CEO Gene Murtagh said at the time.

Kingspan said the continued strong performance of the tech sector is a “clear positive” for the company in both its insulated building envelopes business and for Advnsys.

It predicted the effect is “likely to become more tangibly evident” in the second half of this year “and beyond”.