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Morgan Stanley Forecasts $1.5 Trillion Financing Gap for AI Data Centers
Morgan Stanley expects global data center capital expenditures to reach approximately $2.9 trillion from 2025 to 2028, with a $1.5 trillion financing gap. The largest tech companies can only pay for about half of it themselves, leaving a financing gap estimated at $1.5 trillion. Private credit markets are anticipated to contribute roughly $800 billion of the shortfall, with asset-specific structures being the vehicle of choice. Nvidia is also involved in discussions over backstop guarantees for data center debt financing, but no finalizations have been made.