Castle Securities Forecasts $500 Billion Debt Financing Wave for AI Chip Demand
Credit markets may be weary of record data center financing, but tech companies show no signs of stopping. Castle Securities predicts over $500 billion in debt financing by 2028 to fund AI campus chip needs, equivalent to more than 5% of the Bloomberg US Investment Grade Index.
Castle Securities forecasts that technology companies will raise over $500 billion in debt financing across public and private markets by 2028 to fund chip purchases for AI campus construction. This amount, according to Jeff Eason, chief analyst of the investment-grade bond department, is equivalent to more than 5% of the Bloomberg US Investment Grade Bond Index total. He expects most bonds to have short maturities of three to five years, matching chip lifespans, with some potentially offered as 144A private placements.
Source: 36Kr —
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