JP Morgan analysts say bond issuance to finance AI and data centers is likely to
remain robust over the coming years. Loans currently cover about 85% of project
costs on average; JP Morgan estimates AI-related spending will reach $5.5
trillion by 2030, roughly $4.1 trillion of which is expected to be
debt-financed. Issuers are expected to tap capital markets in every country to
meet growth financing needs. The bank adds that large tech "super-scale cloud
service providers" have sufficient profitability that investors should remain
comfortable even as issuance expands, and that these firms are borrowing heavily
in part to preserve large cash buffers against potential economic deterioration
and higher funding costs.
