Gold prices hit record high above $4,600/oz on Iran unrest, Fed indictment threat
Fed Chair Powell flags DOJ probe over interest rates; Trump denies involvement
’Sell America’ trade is back on as Powell subpoena rattles markets
Five things to watch in markets in the week ahead
Investing.com -- At least $3 trillion will flow into data-center-related investments over the next five years, according to a report released by Moody’s Ratings on Monday.
The ratings firm stated that this massive capital influx will support the boom in artificial intelligence and cloud computing, with investments spread across servers, computing equipment, data center facilities, and new power capacity.
Go deeper with analyst-driven data: fair value estimates, revision trends, and performance screens on InvestingPro — get 55% off today.
Major tech companies are expected to lead this investment surge as they face increasing demand for data centers and their power requirements. Six US hyperscalers -Microsoft Corp.,Amazon.com Inc.,Alphabet Inc.,Oracle Corp.,Meta Platforms Inc., and CoreWeave Inc. - are projected to invest $500 billion in data centers this year alone as capacity growth continues.
While banks will maintain a "prominent role" in providing financing, Moody’s noted that other institutional investors will increasingly participate alongside banks due to the enormous capital requirements.
The report also predicts that more US data centers will access asset-backed securities, commercial mortgage-backed securities, and private credit markets for debt refinancing. New financings are expected to grow in both size and concentration following record issuance levels in 2025.
In the US asset-backed securities market specifically, approximately $15 billion was issued in 2025, with Moody’s expecting volume to "grow considerably" this year partly due to data center construction loans.
Moody’s projects that the race to build new data center capacity is still in its "early stages," with growth expected to continue globally over the next 12 to 18 months.
John Medina, senior vice president at Moody’s, explained that this capacity "will be needed at some point in the next 10 years or so," though he acknowledged that the pace of adoption remains difficult to predict as new technologies emerge. "A ChatGPT that didn’t exist three years ago now uses a lot of compute," Medina noted.
