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Data-center debt is the new sub-prime. In the 2008 housing bust, there were NINJA loans (no income, no job, no assets). This time around, each GW ai-datacenter
by bwfan123 1y ago
Data-center debt is the new sub-prime.
In the 2008 housing bust, there were NINJA loans (no income, no job, no assets).
This time around, each GW ai-datacenter costs 40B of which say 20B is debt. The only profits coming out of these data centers are through the ad business models for meta and google, and the cloud business models for the hyperscalers. The rest is funded by equity or debt or capex. It seems likely that the tax-payer will be on the hook for the debt down the road given how ai datacenters are being projected as critical infrastructure - because - the profitability of the new investments are yet unproven and speculative.
- bigbadfeline 1y ago> It seems likely that the tax-payer will be on the hook for the debt down the road Already happening. The tax/rate-payers are already on the hook for the cost of building new electric power generation [1] [1] https://www.axios.com/2025/08/04/electricity-costs-bills-data-centers-ai https://www.axios.com/2025/08/04/electricity-costs-bills-dat...