Banks seek to offload risk to avoid ‘choking’ on data centre debt
Global lenders explore private deals and risk transfers to cut exposure to AI boom
Global lenders explore private deals and risk transfers to cut exposure to AI boom

A shift towards debt raises the potential fallout from the data centre spending spree

Trading in insurance-like products that protect against tech company defaults is booming

Executives discussing options including shorting basket of artificial intelligence stocks or using derivatives to transfer risk

Jumbo debt sales to fund huge artificial intelligence capex threaten to store up new risks for investors

Lack of sufficient cover means some investors are walking away from deals

Investors attracted by high yields as companies look to shift debt off their balance sheets