Banks Meeting Data Center Demand With Billions In Credit Facilities, Bonds

Markit3.7K FollowersFollow5ShareSavePlay(8min)CommentsSummaryBig banks are benefiting from the boom in data center construction, as they can accommodate the capital needs of hyperscalers and have investment banking arms that can run securitization offerings.Smaller banks can participate in the trend as well, via syndicated loans and by lending to companies that work on more modest projects.We estimate that lenders committed to $121.91 billion in credit for data center properties in 2025, using machine learning to combine two datasets: One with the locations of data centers and another with commercial real estate loans made on US properties. Marco VDM/E+ via Getty Images Demand for data center financing remains red-hot, offering a wellspring for lenders that have the domain expertise and, in many cases, a big enough balance sheet to handle it. The take Big banks areThis article was written byMarkit3.7K FollowersFollowIHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.