JPMorgan Chase: AI-related bond issuance is expected to remain hot in the coming years.

According to CoinWorld, JPMorgan analysts say bond issuance for AI and data center financing is expected to remain hot. Loans typically cover 85% of total project costs, a high percentage projected to drive total AI-related spending to $5.5 trillion by 2030, with approximately $4.1 trillion to be financed through debt. Debt issuers are expected to utilize every capital market in every country to meet their growth financing needs. JPMorgan believes that large technology companies, so-called hyperscale cloud service providers, have strong enough profitability to maintain investor confidence even as debt issuance continues to expand. The bank also speculates that these companies are currently borrowing heavily partly to preserve their large cash reserves in case of future economic downturns and significantly increased financing costs.