AI-driven data center demand is poised to reshape global project financing, according to new research from corporate services firm CSC, which warns of a $1.5 trillion funding gap emerging as generative AI accelerates infrastructure requirements.
CSC surveyed 200 project finance professionals and found that 70 percent see infrastructure as the strongest area for future growth, propelled by soaring power consumption from AI data centers and accelerating digitalization. Renewables (48 percent) and technology, media, and telecommunications (43 percent) followed, both closely tied to data center expansion.
Europe was viewed as the most promising region for growth (nearly 40 percent), ahead of the UK (35 percent). Expectations for Asia Pacific and North America were more muted at 32 percent and 31 percent, respectively, a signal of what CSC called a “broadly diversified global investment pipeline.”
“AI will likely drive an unprecedented surge in project financing, particularly for data centers and associated infrastructure,” said Christian Oakley-White, managing director and head of Project Finance at CSC. “As data center usage shifts from cloud services to generative AI, the requirements for computing power, energy, and financing will grow exponentially.”
He added that, unlike earlier cloud buildouts, which were funded largely from Big Tech balance sheets, AI’s scale will “require a far broader investor base and financing structures – from private equity and sovereign wealth funds to bank loans, public debt markets, and private credit.”
CSC’s findings suggest that diversification is already underway: 53 percent of respondents cited private equity as the leading source of equity funding, followed by infrastructure funds and development finance institutions. Private credit is emerging as an “increasingly important contributor,” according to 38 percent of participants.
But the deal flow comes with greater complexity. Know Your Customer (KYC) requirements were flagged by 80 percent of respondents as the biggest execution challenge.
“The global demand for new energy, infrastructure, and digital capacity is outpacing traditional financing channels,” said Bryan Gartenberg, managing director and global sales head of Project Finance and Loan Agency at CSC. “Private capital is stepping in to bridge the gap, but today’s deals demand more than funding alone.”
He added that stakeholders now require partners “with deep expertise and operational discipline” to manage cross-border, multi-jurisdictional transactions.
The scale of the funding challenge is intensifying debate across financial markets. JPMorgan recently estimated that more than $5 trillion will be spent on global data center and AI infrastructure over the next five years, requiring participation “from every public capital market” as well as private credit, alternative capital providers, and government intervention.
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