Investors are pulling back from riskier data center projects and moving toward infrastructure backed by major cloud providers, tightening credit conditions. AI-related debt reached nearly $500 billion by August 2026, accounting for 20% of high-rated US corporate bond issuance, up from just 1% in 2024. Morgan Stanley forecasts approximately $3 trillion in AI infrastructure spending through 2028, with half financed through debt, while JPMorgan estimates this debt could reach $4.1 trillion by 2030. Borrowing costs have risen sharply, with a Meta-backed project in El Paso pricing at a 7.53% yield compared to 6.58% for a similar earlier deal. In September 2026, Oracle filed a force majeure notice for its New Mexico data center Project Jupiter, highlighting mounting challenges in the sector.
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