Large US banks are rewriting how they underwrite data-center loans as local opposition grows. JPMorganChase, Goldman Sachs, Citi, Morgan Stanley and Wells Fargo are the largest financiers, according to Morningstar. Bank of America has committed $250 billion to data-center infrastructure. Lenders now price and condition deals around whether a project can actually be permitted and built. One CyrusOne facility in Illinois can draw construction funds only once permits and leases are in place. Banks are also moving exposure off their books through syndication, loan sales, risk transfer and securitization. Morningstar warns this shifts risk to less-regulated insurers, private credit funds and other nonbanks. The Bank of England found private credit financed 34% of AI investment in 2025, up from 9%. Analysts also flag concentration risk and the chance that AI demand disappoints. Renewable power is emerging as a cheaper option that draws less local resistance.
What changed
Banks underwrote data centers mainly on cash-flow projections, not community acceptance.
- 71% of US adults oppose local data centers
- 75 projects, $130bn blocked or delayed
- private credit share 9% to 34%
- BofA $250bn financing commitment
Sources