Banks are now trying to offload the AI data center debt they just underwrote
Summary
Banks including JPMorgan, Morgan Stanley, SMBC and MUFG are exploring risk transfers to shed roughly $38 billion of AI data-center construction debt tied to Oracle. The piece highlights rising credit risk signals (Oracle CDS spreads, S&P downgrade) and a shift in lenders toward investment-grade hyperscalers, signaling tighter financing for AI infrastructure as banks cap exposure.