AI Data Center Borrowing Rapidly Climbs Wall Street’s Risk List

Borrowing tied to the AI data-center boom is quickly climbing Wall Street’s list of potential credit threats, as investors increasingly worry that the breakneck pace of financing could sow the seeds of the next market shock.

Roughly 34% of global fund managers surveyed by Bank of America Corp. earlier this month said AI hyperscaler capital spending was the most likely source of a future systemic credit event, double the share from April. US private credit remains the top concern for 42% of respondents, all be it down from 57% last month.

The results highlight a rapid shift in what investors ...