Major U.S. institutions, including JPMorgan and Morgan Stanley, as well as non-U.S. players like Sumitomo Mitsui, are attempting to redistribute a portion of data center-related debt to other investors. According to the FT, they are exploring private sales or risk transfers to free up capital. The scale of the financing is unprecedented: Oracle and CoreWeave have borrowed hundreds of billions of dollars to fund their infrastructure, putting bank balance sheets under strain.

significant risk transfer

Certain transactions illustrate this pressure. JPMorgan and MUFG are looking to distribute 38 billion dollars in debt linked to an Oracle project in the United States, sometimes at a discount. In parallel, banks are developing 'significant risk transfer' structures, already common in Europe, to offload the riskiest tranches of highly concentrated loans while retaining a portion of the exposure, the FT notes.

However, these assets remain risky due to sector concentration, construction hazards, and growing local opposition to certain projects. In this context, banks are diversifying funding sources, from private credit to bonds, and are seeking more counterparties to absorb volumes that are expected to rise further, the British newspaper highlights.