Moody's Forecasts $3 Trillion Data Center Investment Over Next Five Years

Deep News01-12 21:11

Moody's anticipates that at least $3 trillion is poised to flow into data center-related investments over the next five years, with these funds relying on support from multiple sectors of the credit market.

In a report released on Monday, Moody's stated that trillions of dollars need to be invested in servers, computing equipment, data center facilities, and additional power capacity to support the booming growth of artificial intelligence and cloud computing.

The report indicated that a significant portion of the capital will come directly from major technology companies. As demand for data centers and the electricity required to power them continues to surge, investments from six US hyperscale cloud providers—Microsoft, Amazon, Alphabet, Oracle, Meta, and CoreWeave—are expected to reach $500 billion this year.

The report noted that banks will continue to play a "critical role" in financing, and given the immense scale of required capital, other institutional investors will increasingly join banks in participating in lending activities.

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