AI Data Center Debt Bubble Risks Systemic Collapse
The burgeoning artificial intelligence boom necessitates an unprecedented $3 trillion to $5 trillion investment in data centers, a cost far exceeding the capacity of even the largest tech companies. Consequently, debt markets are emerging as the primary source of funding, encompassing everything from blue-chip bonds to complex asset-backed securities. While this massive influx of capital offers lucrative opportunities for lenders, it also introduces risks related to overinvestment, rapid technological obsolescence, and increasing leverage for AI firms.
John Q. Hosedrinker