Data centers run on debt. That was a problem for bonds this year — and it’s only going to get worse.

AI Summary

Heavy AI-related borrowing to finance data centers has flooded bond investors with issuance and weighed on performance this year. The article warns that funding needs will continue to grow, while a change in congressional control could complicate policy conditions.

AI debt issuance this year overwhelmed investor portfolios, and has disappointed from a performance perspective. The funding need won’t get any better with Democrats in control of Congress.