AI data-center financing could strain credit markets, says fortress analyst

Brian Stewart, global co-head of corporate credit at Fortress, warned that the credit market may face a more severe absorption challenge due to borrowing by AI data centers. Speaking on Bloomberg Open Interest, Stewart highlighted that U.S. investment-grade issuance recently hit a record high. He noted that the AI funding cycle has primarily been driven by venture capital, growth equity, and investment-grade bonds so far. Stewart’s remarks come as the sector continues to expand, raising concerns about the sustainability of current financing trends. The analyst’s comments underscore the growing role of AI infrastructure in shaping credit market dynamics. As the industry scales, the potential impact on financial markets remains a key point of discussion among industry experts.