JPMorgan, Morgan Stanley struggle 6 months to offload $38B Oracle data center debt
SumitGup · x · 2026-10-11
- Per Financial Times reporting, JPMorgan, Morgan Stanley, SMBC and MUFG are quietly shopping AI data center debt they underwrote, increasingly via significant risk transfer (SRT) deals that shift the riskiest slices to outside investors as banks hit internal exposure limits.
- The stickest case: a bank group including JPMorgan and MUFG has spent over six months trying to distribute $38 billion in construction debt tied to data center projects in Texas and Wisconsin leased to Oracle.
- Six months ago banks raced to underwrite these loans; now the lenders closest to the money are hedging their own bets — a warning sign about AI buildout financing risk.
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