Source: Morgan Stanley is pitching data center developers to use leveraged loans rather than bonds, and estimates ~$15B will be issued this year in such loans (Dakin Campbell/The Information)

Morgan Stanley is actively steering data center developers toward leveraged loans instead of traditional bond financing, with an estimated $15B in such loans expected to be issued this year, signaling a shift in how critical infrastructure projects are being financed. This financing trend reflects both the massive capital demands of AI and cloud infrastructure buildout and potential changes in credit market conditions that make leveraged debt more attractive than traditional bonds. For IT organizations, this financing shift could impact data center availability, pricing, and the competitive landscape of cloud providers, while also signaling robust continued investment in computing infrastructure.