Debt financing for data centers and related infrastructure has grown rapidly, leading credit analysts to categorize AI versus non-AI-linked debt across markets. Several asset managers have filed to create exchange-traded funds focused on AI or AI infrastructure-related debt. However, parts of this category are currently underperforming, with wider spreads on tech giants' corporate debt in the investment-grade market and investors demanding bigger concessions in recent bonds for AI data center projects in the high-yield market. There is also skittishness in the bank loan market for AI project financing, as investors become more selective and scrutinize project-specific construction and other risks.
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