The All-Consuming AI Boom Forces Private Credit to Break a Taboo

The AI boom's insatiable demand for computing power and energy is forcing private credit firms to abandon their traditional aversion to lending against physical assets like data centers and power plants. Lenders are now structuring billions of dollars in loans backed by these hard assets to fund the infrastructure needed for artificial intelligence development. This shift marks a significant departure from the industry's focus on cash-flow-based lending, reshaping the private credit market.

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