Morgan Stanley expects global data center capital expenditures to total approximately $2.9 trillion between 2025 and 2028, including $1.6 trillion for IT hardware and $1.3 trillion for physical infrastructure. Amazon, Microsoft, Alphabet, Meta, and Oracle are expected to self-fund about $1.4 trillion through their cash flows, leaving an estimated external financing gap of $1.5 trillion. Private credit markets could provide roughly $800 billion of that gap through loans backed by specific facilities or equipment, while hyperscaler lease commitments exceed $1.2 trillion. Nvidia has also held discussions about backstop guarantees worth up to $250 billion to support data center debt financing, although no final agreement has been announced. Meanwhile, the projected US data center power shortfall is expected to reach 32 to 33 gigawatts by 2028.
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