Wall Street Banks Tighten Data Center Financing Due Diligence
Major U.S. banks are increasing credit risk assessments for data center projects as community opposition and permitting delays threaten billions in AI infrastructure investments.
Major Wall Street lenders are intensifying due diligence for U.S. data center financing to mitigate risks from rising political and community opposition. JPMorgan Chase & Co., Morgan Stanley, and Bank of America have begun incorporating community sentiment and permitting readiness into their credit risk assessments to avoid allocating resources to projects that may be canceled or delayed.
Local opposition typically focuses on electricity costs, water usage, noise, and aesthetics. Data Center Watch reports that at least 75 projects, valued at approximately $130 billion, faced local pushback during the first quarter of 2026. Current high-profile projects facing such challenges include a Meta-BlackRock venture in El Paso, Texas, a CyrusOne center in Sangamon County, Illinois, and a Related Digital campus for Oracle in Saline Township, Michigan.
Despite these localized risks, financial institutions remain committed to the sector. This appetite is driven by forecasts from Goldman Sachs indicating that big tech companies will spend over $6 trillion on artificial intelligence through 2030.
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