Hua Er Jie Jian Wen·2025-09-24 06:07Core Insights - The demand for computing power driven by the AI revolution is leading to a significant capital influx, with global spending on AI data centers and chips expected to reach $2.9 trillion by 2028, primarily funded by tech giants and debt financing [1] - A powerful alliance of global banks, private credit giants, and specialized lending institutions is forming to meet this unprecedented funding demand, exploring innovative financing structures such as AI chip collateral [1] - The capital race driven by AI is creating substantial opportunities for financial institutions capable of mobilizing funds quickly and managing risks effectively [1] Group 1: Traditional Banks' Role - JPMorgan Chase has taken an aggressive stance in AI data center financing, agreeing to bear the entire risk for a $9.4 billion loan to Crusoe for building large data centers for Oracle and OpenAI [2] - This transaction has propelled JPMorgan to the top of the IJGlobal rankings for telecom project debt underwriting, having also led $38 billion in loans for Oracle's data center projects [2] - Japanese banks, particularly SMBC and MUFG, are gaining traction in the data center financing market due to their cost advantages from Japan's low-interest-rate environment [3] Group 2: Private Credit's Dual Role - Blackstone is playing a dual role in the data center sector, both as an owner of major developers and as a significant lender, with notable transactions including a $7.5 billion debt financing for CoreWeave secured by NVIDIA chips [4] - This "chip collateral loan" model presents risks due to the shorter lifespan of chips compared to other data center assets, but it also offers high returns, with interest rates reaching 10.5% [4] - Blackstone also engages in traditional, lower-risk data center loans, provided that projects have agreements with investment-grade tenants [4] Group 3: Alternative Investors' Involvement - Alternative investors are increasingly entering the market, providing crucial capital for earlier-stage, higher-risk projects, with PIMCO recently authorized as the lead underwriter for a $26 billion debt financing for Meta's new data center [5] - Macquarie Bank is known for supporting early-stage projects, offering various financing options, including a $5 billion preferred equity investment in Applied Digital with a 12.75% annual dividend [5] - Blue Owl and Magnetar Capital are also noteworthy, with Blue Owl investing over $600 million in data center projects and Magnetar participating as a major investor in CoreWeave's innovative loan transactions [6]