Morgan Stanley fuels AI boom with multi‑billion dollar data‑center and chip financing

Morgan Stanley has become a leading architect of financing structures that channel tens of billions of dollars into artificial‑intelligence infrastructure. The bank arranged a $3.2 billion bond for data‑center developer TeraWulf backed by Google, a $27 billion loan package for Meta’s Hyperion data‑center project together with Blue Owl, and advised on a $35 billion chip‑financing deal for Broadcom. These instruments convert long‑term usage contracts and the balance sheets of major tech firms into securities that can be sold to institutional investors, expanding the pool of capital available for AI‑related projects.

The new models helped Morgan Stanley’s capital‑markets fee revenue climb from $1.4 billion to $2.3 billion in the first half of the year, allowing it to overtake Goldman Sachs in that segment. The bank projects that AI‑linked loans and bonds will total $236 billion worldwide by May 2026 and could approach $570 billion by year‑end, while AI spending by Google, Amazon, Microsoft and Meta is expected to reach $700 billion this year and possibly $1 trillion next year.