Citadel Securities sees $500 billion more AI data center debt by 2028

Market reports say Citadel Securities expects more than $500 billion in additional debt for AI chips by 2028 as AI infrastructure expansion drives rising financing needs across bonds, loans and private credit.

Summary

Market reports say Citadel Securities expects more than $500 billion in additional public and private debt issuance by 2028 to finance chips for AI data centers. The forecast comes as AI infrastructure investment accelerates and financing needs rise across bonds, loans and private credit. Citadel estimates AI capital expenditure will increase to about $600 billion in 2026 from roughly $400 billion in 2025. Morgan Stanley has separately estimated that private credit for AI data centers could reach around $800 billion by 2028 as part of a projected $1.5 trillion financing gap against a $2.9 trillion global data center capex outlook. Recent issuance includes about $75 billion in bonds and loans raised by hyperscalers in September and October 2025 for AI data center construction, while US data center debt reached $25.4 billion in 2025, up 112% year over year. MediaTek has also approved a $5 billion financing package to expand production capacity for AI data center chips.

Terms & Concepts
  • Hyperscalers: Large cloud and internet companies that build and operate massive data center infrastructure and often raise debt to fund expansion.
  • Private credit: Non-bank lending provided by private funds or institutions, often used for large capital-intensive projects such as data centers.
  • Capital expenditure: Spending on long-term assets such as data centers, chips and related infrastructure, often abbreviated as capex.