Voya Limits Data Center Credit Investing on AI Demand Worries

Technology companies have borrowed billions to fuel the rapid expansion of data centers for AI, but that demand is at risk of reaching a plateau before the debts are all paid back, according to Voya Financial Inc.’s investment arm.

Within its $50 billion private credit portfolio the asset manager is limiting holdings tied to large technology companies that have long-term contracts for artificial intelligence-linked infrastructure or “hyperscaler offtakers,” according to Voya’s Paul Aronson.

Voya is focused on transactions for assets more shielded from sudden obsolescence, Aronson, the head of portfolio strategy for private investment-grade credit, said in an interview. His ...