{"id":8296,"date":"2026-01-24T16:15:00","date_gmt":"2026-01-24T16:15:00","guid":{"rendered":"https:\/\/musictechohio.online\/site\/data-center-trump-stargate\/"},"modified":"2026-01-24T16:15:00","modified_gmt":"2026-01-24T16:15:00","slug":"data-center-trump-stargate","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/data-center-trump-stargate\/","title":{"rendered":"Trump\u2019s Huge AI Project Is Running Into a Major Financial Problem"},"content":{"rendered":"
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It\u2019s 2026, and tech companies continue to insist they need to spend staggering amounts of money on AI data centers. Yet for all of its enthusiasm<\/a> over the past few years, Wall Street is finally starting to squint at the numbers.<\/p>\n

According to new reporting by Business Insider<\/em><\/a>, JPMorgan Chase is running into trouble finding investors interested in servicing billions in debt backing two <\/strong>of the first five Stargate data centers.<\/p>\n

Stargate is Donald Trump\u2019s $500 billion AI project<\/a> led by tech companies Oracle and OpenAI. Its vague goal, OpenAI has explained<\/a>, is to \u201csecure American leadership in AI,\u201d which will somehow \u201csupport the re-industrialization of the United States\u201d and \u201cprovide a strategic capability to protect the national security of America and its allies.\u201d<\/p>\n

But if JPMorgan \u2014 which led financial lenders through a $38 billion Stargate debt raise \u2014 is already struggling to sell the vision, that all might be easier said than done. Per BI<\/em>, a person familiar with both data centers said they\u2019re fully financed, though noted that banks and other investors are growing jittery about pouring even more money into the megaproject.<\/p>\n

\u201cWe are hearing from market participants that in some cases, there may be banks that could be approaching the exposure levels they\u2019re comfortable with when it comes to certain data center projects,\u201d S&P Global Infrastructure Ratings director Dhaval Shah told BI<\/em>.<\/p>\n

That could mean trouble for Oracle, the cloud gianttapped to provide the physical infrastructure for Stargate. Back in September, S&P Global noted<\/a> it was considering cutting Oracle\u2019s credit rating \u2014 a letter-grade investors use to judge a company\u2019s creditworthiness \u2014 below BBB.<\/p>\n

The scale runs<\/a> from AAA at the very top to D, or default, at the bottom. Anything below BBB- would place Oracle in junk-bond territory, which would significantly raise the cost to borrow more debt. In other words, Stargate may soon be seen as so risky that the financial situation<\/a> behind its data centers becomes unsustainable.<\/p>\n

To put the trouble with the two initial data centers into perspective, Trump said last year that Stargate could require as many as 20 data centers<\/a> when all is said and done. If the market is already reaching its comfortable limit, it\u2019s difficult to imagine a world where Stargate proceeds without significant revisions.<\/p>\n

\u201cI am very surprised these loans were even underwritten at the time,\u201d Gil Luria, an analyst at the firm DA Davidson told BI<\/em>, referring to the data centers that have<\/em> been funded. \u201cThe market has indicated this is not investment-grade debt.\u201d<\/p>\n

More on data centers: <\/strong>AI Data Centers Are an Even Bigger Disaster Than Previously Thought<\/a><\/em><\/p>\n

The post Trump\u2019s Huge AI Project Is Running Into a Major Financial Problem<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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