JPMorgan's Kevin Curtin on AI backlash: There's always risk with financing infrastructure projects

Summary

JPMorgan AI infrastructure investment banking head Kevin Curtin argues that political backlash against data centers is a manageable risk and that financing conditions remain robust. He points to roughly $50 billion of 144A data center construction issuance and estimates of $5 trillion in data center and related chip capex through 2030, with over $3 trillion likely to be raised in capital markets. Hut 8 and Meta are cited as issuers with strong market access.

• Local lawmakers in Texas, New York and Pennsylvania are placing new restrictions on data centers.
• Curtin says community support and zoning are normal infrastructure risk vectors.
• Data center financing pricing remains robust, with about $50 billion in 144A issuance over the past year.
• Wall Street research sizes data center and related chip capex at about $5 trillion over five years.
• About $3 trillion of that capex may need to be financed via ABS, CMBS and 144A markets.
• Hut 8 and Meta are highlighted as issuers with strong capital markets access.
• Digital infrastructure risk concentration is rising, but capital markets have responded robustly.