Data Centers to Drive $2T Credit Market Evolution: Apollo 2025 Credit Outlook
- Editor
- Jan 20
- 2 min read
What's New
Apollo's 2025 Credit Outlook reveals that the booming artificial intelligence market and data demands will require over $2 trillion in data center infrastructure financing through 2030, fundamentally reshaping credit markets as traditional financing structures prove insufficient for this unprecedented scale.
Why It Matters This massive capital need emerges as credit markets face multiple inflection points, from bank-private credit partnerships to policy shifts, creating both challenges and opportunities for investors, lenders, and borrowers.
Big Picture Drivers
Infrastructure: Data center demand projected to surge by 60 gigawatts by 2030, requiring integrated investment across facilities, power generation, and chip manufacturing
Partnerships: Banks and private credit firms forming strategic alliances to address financing gaps in both sub-investment and investment grade markets
Refinancing: Over $620 billion in high-yield debt faces 2026-2027 maturities amid higher interest rate environment
Regulation: New administration's policies on tariffs and immigration could impact inflation trajectory and sector-specific credit risks
By The Numbers
$10B: Cost per gigawatt of data center capacity
90%: Portion of data center growth driven by top five hyperscalers through 2030
31.9%: Market share controlled by top 10 private debt managers
160%: Expected increase in data center power demand through 2030
Key Trends to Watch
Traditional financing structures becoming inadequate as single data center projects now exceed typical securitization size limits.
Private credit firms expanding into investment-grade lending through bank partnerships.
ESG considerations driving power source decisions for data center builds.
Government efficiency initiatives creating new credit risks in healthcare and business services sectors.
The Wrap
The unprecedented scale of data center infrastructure needs is catalyzing structural changes across credit markets, forcing innovation in financing structures and creating opportunities for investors who can bridge traditional market limitations.
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