AI data center boom leans harder on debt as bonds, private credit and securitization accelerate
Summary
Financing for AI data centers is increasingly shifting from “cash-rich hyperscalers just spend” to a broader credit story, with data center/project financing volumes sharply higher and more issuance expected. Reuters flags rising investor attention on credit risk signals (like CDS moves) and the growing role of private credit and securitized products to fund buildouts. This matters because the AI buildout’s bottleneck isn’t only GPUs—it’s power, real estate, and capital structure, and debt markets can tighten faster than tech demand cools. The deep dive question investors are now asking: if utilization or pricing disappoints, who eats the downside—hyperscalers, data center owners, or the credit wrappers holding the risk?
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