Castle Securities predicts that the demand for chips driven by the AI boom will trigger a $500 billion debt financing frenzy.

The credit market may have grown weary of the record financing activity in data centers, but technology companies have not slowed down. Castle Securities predicts that by 2028, they will raise over $500 billion in debt financing in both public and private markets to fund the chips needed for AI park construction. Jeff Eason, chief analyst in the firm's investment-grade bond department, noted that this amount represents more than 5% of the total size of the Bloomberg U.S. Investment Grade Bond Index. He expects that most of the bonds issued will have shorter maturities of about three to five years, matching the lifespan of the chips, with a portion possibly issued in the form of 144A private placements. Eason pointed out that this forecast may still be somewhat conservative.