HSBC CEO Urges Selective AI Data Center Bets as Global Spending Targets $7 Trillion by 2030
Updated
Updated · CNBC · Oct 20
HSBC CEO Urges Selective AI Data Center Bets as Global Spending Targets $7 Trillion by 2030
2 articles · Updated · CNBC · Oct 20
Summary
Georges Elhedery said investors should not take an all-in approach to AI data centers, arguing some projects are harder to back despite the sector's rapid expansion.
Tenancy agreements and contract pricing are the key filters, he said, warning that not all deals have the quality needed to support strong investment.
HSBC, with nearly $3 trillion in assets, is exposed on both sides of the boom as a financier and operator of data centers while using AI to re-engineer the bank.
McKinsey sees data center spending reaching $7 trillion by 2030, but financing strains are rising as hyperscalers and governments compete for capital in bond markets.
JPMorgan estimated earlier this year that AI-related debt issuance will hit $4.1 trillion by decade-end, adding to concerns over higher yields and swelling corporate leverage.