Navigating the Debt-Driven A.I. Boom: How Big Tech is Funding Their Infrastructure Frenzy

Debt Enters the A.I. Boom as Tech Giants Finance Massive Infrastructure Spending

By Ian Frisch
Nov. 8, 2025, 8:00 a.m. ET

The A.I. boom drives big spending in new tech. It also shifts the way firms pay for huge computer sites. QTS Data Centers, owned by Blackstone, puts billions into more computing space. They use debt tools to speed their growth.

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Blackstone’s Landmark $3.46 Billion Data Center Debt Deal

QTS Data Centers nears a $3.46 billion deal on commercial-mortgage-backed securities. The plan ties bonds to 10 data centers in six U.S. markets: Atlanta, Dallas, and Norfolk in Virginia. These centers use as much energy as Burlington, Vermont does in five years. Blackstone did not comment. The news shows that more investors want digital assets as demand for data work and A.I. power grows.

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The Scale of A.I. Infrastructure Investment

McKinsey & Company claims we will need $7 trillion for data centers by 2030. Big tech firms like Google, Meta, Microsoft, and Amazon spent $112 billion in one quarter. High spending has pushed shares down. Meta’s price dropped 11% after it shared plans for high spending.

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Complex Financing Amid Rising Risk Concerns

Tech firms now use more than internal cash to raise the funds they need. They sell corporate bonds, set up asset deals, get private credit, and use special companies such as S.P.V.s. For example, Meta created a $30 billion debt plan for a new Louisiana data center by using an S.P.V. This move kept its sheet in order and helped bring in more money. Elon Musk’s xAI may use a similar plan to hold up to $20 billion in debt for chip buys. This year, asset-backed deals for data centers hit $13.3 billion in 27 deals—a 55% jump over last year. Some deals back one tenant with a long lease. These seem safe but carry one risk. Other deals back centers with many small tenants. They spread risk but usually have lower credit marks.

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Investor Appetite and Market Change

Investors now put more money into digital assets. Sarah McDonald from Goldman Sachs notes that bonds tied to data centers get strong interest, even though they make up a small part of the asset market. Dan McNamara from Polpo Capital says data centers do not match the old style of real estate. Investors feel more at ease with these assets now. Still, bonds that depend on one company or facility may add risks if tech grows old or markets fall.

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Potential Systemic Risks Loom

The A.I. spending boom brings fast tech progress and more debt risks. Only about 3% of consumers pay for A.I. services, totaling roughly $12 billion each year. Should tech firms not earn enough to cover rising costs, credit markets might feel the loss. The Bank of England warned that as companies shift to using debt for data center growth, system risks may rise along with market fear.

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Conclusion

The change in A.I. finance shows two sides. There is great chance and rising growth, but also more debt strain and risk. As major tech companies push tech and build more, all eyes watch how their money plans will shape the future of A.I. work and other markets.

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