Inside U.S. economy, from autos to AI to retail, suppliers are shoring up balance sheets and cash flow

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The AI boom and Trump’s trade war are among macro trends leading demand for supply chain financing within the U.S. economy.

There has been a recent surge in interest for financing to support data center component suppliers, according to Wells Fargo data. “The need for computing power for data centers is tremendous,” said Jeremy Jansen, head of global originations at Wells Fargo Supply Chain Finance. “This goes beyond the bricks-and-mortar. The capex that goes into these facilities, and the power generation to make sure these facilities stay online 24/7, is in the billions of dollars,” he added.

Jansen said data center component suppliers are seeking more financing support so they have the components readily available when a data center client calls.

“A lot of the suppliers are companies with investment-grade rated, public debt, and cash flow facilities, but the need to carry this inventory certainly puts stress on working capital,” Jansen said.