BofA survey shows fund managers worry about AI data-center debt
A new Bank of America survey shows that heavy borrowing tied to the AI data-center boom is starting to worry global fund managers.
About 34% now think spending by big AI players could trigger serious credit problems, a jump from just 17% last month.
The concern is growing as tech companies have already borrowed over $300 billion since the beginning of last year to build up their AI infrastructure.
US private credit still tops concerns
Even with the focus on AI, US private credit still tops the list of worries for fund managers, though fewer are concerned than before (down to 42% from 57%).
Inflation, geopolitical tensions, and fears of an "AI bubble" are also making investors cautious.
As traditional tech firms face disruption from rapid advances in artificial intelligence, lenders are shifting more capital toward AI-related businesses.