@morganstanley sees 70GW US data center power shortfall
Power access is the top data center bottleneck. @morganstanley says 27% of operators cite it globally, versus 45% in the US. The bank estimates a 70GW US power shortfall in 2026-28. That's a constraint on where capacity can actually get built.
@morganstanley still sees compelling capacity growth, with US power constraints pushing operators toward Europe, SE Asia and India. The regional trade-offs matter. Europe offers favorable build costs but high energy pricing. In China, memory availability is the leading constraint, cited by 29% of operators.
Financing is getting tighter too. AI debt issuance is running at 2.2x the 2023 rate, while @morganstanley flags funding pressure on peers of the AA-rated hyperscalers. The CDS AI basket trades >60bp wider than CDX IG. Capacity demand remains strong, but access to power and financing limits who can deliver it.
Power access is the top data center bottleneck. @morganstanley says 27% of operators cite it globally, versus 45% in the US. The bank estimates a 70GW US power shortfall in 2026-28. That's a constraint on where capacity can actually get built.
@morganstanley still sees compelling capacity growth, with US power constraints pushing operators toward Europe, SE Asia and India. The regional trade-offs matter. Europe offers favorable build costs but high energy pricing. In China, memory availability is the leading constraint, cited by 29% of operators.
Financing is getting tighter too. AI debt issuance is running at 2.2x the 2023 rate, while @morganstanley flags funding pressure on peers of the AA-rated hyperscalers. The CDS AI basket trades >60bp wider than CDX IG. Capacity demand remains strong, but access to power and financing limits who can deliver it.
