Wall Street Flags AI Data Center Debt as Credit Risk, With 34% Seeing Systemic Threat
Updated
Updated · Bloomberg · May 19
Wall Street Flags AI Data Center Debt as Credit Risk, With 34% Seeing Systemic Threat
3 articles · Updated · Bloomberg · May 19
34% of global fund managers in Bank of America’s May survey said AI hyperscaler capital spending is the most likely source of a future systemic credit event, up from 17% in April.
The jump reflects mounting concern that debt tied to the AI data-center buildout is expanding so quickly that it could plant the seeds of the next market shock.
US private credit still ranked as the top credit worry for 42% of respondents, though that fell sharply from 57% a month earlier.
The shift suggests investors are moving some of their focus from established private-credit risks toward leverage building around the AI infrastructure boom.
Could trillions in off-balance-sheet AI debt become the trigger for the next global financial crisis?
With AI chips becoming obsolete in months, is the data center boom built on a foundation of sand?
The $3 Trillion AI Infrastructure Debt: Systemic Risks, Opaque Financing, and Market Instability
Overview
As of May 2026, Wall Street is intensely debating the true value of AI stocks, driven by a surge in financial commitments to build AI infrastructure. Major tech giants like Alphabet, Amazon, Oracle, Meta, and Microsoft have rapidly increased their debt, issuing $121 billion in new bonds in 2025 alone. This unprecedented borrowing is fueling massive investments in data centers, with projections reaching up to $3 trillion in the coming years. However, this rapid accumulation of debt is raising alarms about potential systemic risks, as the scale and speed of investment may outpace real economic demand and strain financial stability.