Moody’s Ratings agency expects investments worth at least $3 trillion to flow into data centers over the next five years, supported by strong support from multiple sectors in the credit markets to provide this funding.
Moody’s explained in a report published on Monday that these funds will be allocated to invest in servers, computing equipment, data center facilities, in addition to new power generation capabilities, in order to support the accelerating growth of artificial intelligence and cloud computing technologies.
Bloomberg reported that a large portion of these investments will come directly from major technology companies, which face increasing demand for energy and data centers to operate their systems.
Moody’s expects that investments from six leading American companies in the field of data centers – namely: “Microsoft,” “Amazon,” “Alphabet,” “Oracle,” “Meta Platforms,” and “CoreWeave” – will reach $500 billion this year, with continued growth in storage and operational capacity.
The report indicated that banks will continue to play a fundamental role in financing, while lending from other institutional investors will increase alongside banks, given the need for huge capital.
Moody’s also expects more American data centers to turn to asset-backed securities, commercial mortgage-backed securities, and private credit when refinancing their debt.
The report explained that new financing operations will witness an increase in size and focus, after record levels of issuances in 2025, where issuances in the asset-backed securities market in the United States amounted to about $15 billion, and this figure is expected to grow “significantly” this year, due in part to data center construction loans.
In contrast, the urgent need for debt to support the artificial intelligence revolution raises concerns about the possibility of a bubble forming that may affect investors in stocks and credit if some technologies fail to meet high expectations.
However, the demand for expanding data center capabilities remains high, and there are no signs of a slowdown. Moody’s believes that the race to build these centers is still in its early stages, and expects continued growth globally over the next 12 to 18 months.
