AI-Related Debt Issuance Expected to Remain Hot for Years -- Market Talk

Dow Jones06-16 22:31

1031 ET - Debt issuance to finance AI and data center is likely to remain hot, JPMorgan analysts write. Loans average 85% of projects' cost, a high ratio likely to drive total AI expenditures to $5.5 trillion through 2030, with $4.1 trillion debt-financed, JPM says. Debt-issuers are expected to tap into "every single capital market" in various countries to support their growth needs. Top players, or hyperscalers, are profitable enough to keep investors calm amid the rising issuance. JPM suspects they are borrowing so much now so they can preserve their massive piles of cash, in case the economy worsens and borrowing costs spike. (paulo.trevisani@wsj.com; @ptrevisani)

 

(END) Dow Jones Newswires

June 16, 2026 10:31 ET (14:31 GMT)

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