34% of Fund Managers Name AI Data Center Debt Top Credit Threat
Bank of America’s May survey of 150+ global fund managers finds 34% identify AI data center debt as the top potential systemic credit threat, twice April’s level. US private credit remains the leading worry at 42%, down from 57% last month.
1. Survey Results
Bank of America surveyed more than 150 global fund managers between May 8 and May 14. Respondents ranking AI data center debt as the most likely systemic credit shock rose to 34%, up from about 17% in April, while concern over US private credit fell to 42% from 57%. Other flashpoints included US consumer credit at 6%, Japanese government debt at 4%, and crypto and stablecoins at 2%.
2. AI Data Center Financing Scale
Since early 2025, US investors have lent over $300 billion to tech companies for AI infrastructure. A current deal under negotiation involves a $16 billion Michigan data center campus, with roughly $14 billion structured as debt, illustrating the growing size and complexity of these financing packages.
3. Implications for Lenders
Lenders are reassessing balance‐sheet allocations and cash reserves to handle large AI debt deals. Many are directing capital toward businesses directly tied to AI, while structuring debt through widely held bond funds and retirement accounts. Public opposition has also stalled 48 data center projects worth $156 billion in planned construction due to concerns over electricity costs.