European data-center bonds could reach $10 billion this year as banks position for a much larger wave of AI infrastructure financing.
JPMorgan Chase and Goldman Sachs are positioning themselves to finance a wave of European debt tied to artificial-intelligence infrastructure as the region tries to close its technology gap with the United States.
Goldman Sachs estimates that $5 billion to $10 billion of data-center bonds could reach European markets by the end of the year, with a much larger wave expected in 2027. The US has already seen more than $350 billion in AI-related issuance this year, according to Bloomberg data.
Europe may need about $3 trillion through 2035 for cloud infrastructure, data centers and other critical technologies, according to Bloomberg Intelligence.
The region is also seeking greater control over its technology supply chain as officials warn that dependence on US companies could create strategic leverage.
JPMorgan and Goldman Sachs have assembled specialist teams to pitch data-center operators and investors. JPMorgan’s Noah Roth said investor interest was intense, describing the market as “FOMO.”
Large projects will require deeper pools of capital. Portugal’s planned 1.2-gigawatt Start Campus facility is one example of the scale expected to drive more investment-grade and high-yield issuance.
AI-related debt accounts for about 5% of European high-yield issuance, compared with 19% in the US. Goldman Sachs estimates Europe’s share of global AI infrastructure investment could rise to 25% from 10%.
Investors remain cautious about projects that have not yet been built. Data centers’ heavy use of electricity and water is drawing scrutiny, while bonds from CoreWeave have traded below face value after Meta developed competing cloud infrastructure.
An Equinix bond deal drew more than £510 million in orders, showing demand for the limited supply of European AI debt.
