JPMorgan Sees $1.5 Trillion Bond Surge Needed To Power AI Data Center Expansion

Benzinga

JPMorgan projects AI hyperscalers will need around $1.5 trillion in bonds to fund data center growth, with total costs potentially reaching $7 trillion. Analysts say private credit and government funding will fill most gaps, warning the AI boom could echo the early-2000s telecom bubble.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03J.P. Morgan analysts estimate AI hyperscalers will require roughly $1.5 trillion in investment-grade

00:08bonds over the next five years to fund a massive data center expansion, according to Bloomberg.

00:14J.P. Morgan estimates leveraged finance will supply $150 billion for data centers over five

00:19years, leaving a $1.4 trillion gap likely to be filled by private credit and governments.

00:24The total cost could reach up to $7 trillion, potentially driving a resurgence in bond and

00:29loan markets.

00:31Analysts said data center demand has surged rapidly, constrained only by resources, real

00:36estate, and Energy Meta's $30 billion bond sale set a high-grade market record, followed

00:41by $18 billion in investor demand for Oracle's data center project.

00:46J.P. Morgan warned of risks reminiscent of the early 2000s telecom bubble, noting the AI

00:51build-out could yield both spectacular winners and major losses.

00:56For all things money, visit Benzinga.com.

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