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Increasing worries are emerging that artificial intelligence (AI) data centers might act as a “trigger” for worldwide financial markets. This is due to the fact that leading technology firms are securing substantial capital via corporate bonds and private loans to support AI infrastructure. Should the ability to generate revenue be postponed or if the supply of data centers exceeds demand, imprudent investments could result in significant losses, possibly causing widespread effects on global financial markets.

As of last month, major hyperscalers like Amazon, Google, and Meta issued corporate bonds totaling 194 billion dollars (around 280 trillion Korean won), according to the financial information company LSEG. This represents an 80% increase compared to the 108 billion dollars issued during the entire previous year. Goldman Sachs predicts that these companies’ corporate bond issuances may reach 400 billion dollars next year. Should these data centers not generate adequate profits, the weight of significant interest and principal repayments could strain big tech companies, potentially resulting in credit rating downgrades and substantial drops in bond values.

An accelerated rate of depreciation (aging) represents an additional risk factor. The value of graphics processing units (GPUs), which are essential components in AI data centers, decreases when newer models with enhanced performance and energy efficiency become available. With growing competition in the development of AI chips, NVIDIA has been introducing new products on an annual basis. As a result, the value of GPUs and AI servers within data centers may drop quickly. The typical lifespan of a GPU’s value, which was once thought to be approximately six years, could now be reduced to between two and three years.

This creates the possibility of needing to replace equipment sooner than expected or suddenly reducing the value of assets. These situations may greatly raise companies’ capital expenditures while reducing their profit periods, eventually harming financial markets. Delays in data center projects caused by public resistance and stricter regulations are further risk elements. Extended construction periods would lead to higher loan interest and labor expenses, increasing the chance of financial instability linked to data centers.

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