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Data centers run on debt. That was a problem for bonds this year — and it’s only going to get worse.

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MarketWatch Top Stories
By Joy Wiltermuth
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Data centers run on debt. That was a problem for bonds this year — and it’s only going to get worse.
Photo / Coverage: MarketWatch Top StoriesCredit: Joy Wiltermuth
EXECUTIVE SUMMARY

AI debt issuance this year overwhelmed investor portfolios, and has disappointed from a performance perspective. The funding need won’t get any better with Democrats in control of Congress.

Key Takeaways

  • Data centers run on debt.
  • That was a problem for bonds this year — and it’s only going to get worse..
  • AI debt issuance this year overwhelmed investor portfolios, and has disappointed from a performance perspective.

AI debt issuance this year overwhelmed investor portfolios, and has disappointed from a performance perspective. The funding need won’t get any better with Democrats in control of Congress.

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