AI Data Center Debt Similar to 2008 Subprime Crisis

Warnings have emerged that the investment frenzy in artificial intelligence (AI) data centers is creating a risk structure similar to that of the 2008 subprime mortgage crisis. U.S. technology critic Ed Zitron criticized the investment structure of AI infrastructure as a 'corporate scandal,' pointing out that related obligations are scattered across footnotes and special purpose vehicles (SPVs) rather than being clearly presented in the financial statements, making it difficult for investors to grasp the actual burdens. Zitron characterized AI data centers as the 'subprime mortgages of this AI bubble,' claiming that the SPVs established to build data centers are similar to the structures that bundled and sold substandard home loans in 2008. According to analysis by Nikkei Asia, the off-balance-sheet obligations of five companies—Alphabet, Amazon, Meta, Microsoft, and Oracle—are estimated to be around $1.65 trillion, and when adding the officially reported debts, the total obligations reach approximately $3 trillion. Although investments in data centers and GPUs are secured by long-term contracts, the revenue sufficient to operate these facilities remains uncertain. Zitron warned that AI data centers could become the subprime mortgages of this bubble.

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