AI Data Center Boom

Feb 10, 2026

How U.S. fixed income markets are powering the AI expansion.

2026 is expected to see record debt issuance driven by massive AI infrastructure capex spending, but strong balance sheets, emerging AI revenue growth, and stable investor demand should help contain market pressures.

Key takeaways

  • 2026 could see nearly $500bn in AI-related debt financing across public and private markets. This unprecedented supply will pressure credit spreads, particularly in technology, creating near-term technical weakness rather than fundamental deterioration.
  • Unlike the dot-com bubble, the companies driving AI investment tend to have strong balance sheets, high cash flow generation, and low leverage. They’re optimizing cost of capital, not re-leveraging, and can self-fund their AI buildout while working to maintain shareholder returns.
  • Institutional investors provide inelastic demand for high-quality credit that should cushion spread widening. Combined with early signs of AI revenue growth and 90% enterprise AI adoption, the risk of market collapse in the near term is low, though careful credit selection remains essential.

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