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Collapse of £20bn data centre deal fuels AI bond rout as cost of default insurance spikes

Credit default swaps tied to AI and data centre assets spiked as a £20bn data centre deal collapse triggered a broad sell-off in AI-linked bonds.
Credit default swaps tied to AI and data centre assets spiked as a £20bn data centre deal collapse triggered a broad sell-off in AI-linked bonds.

A £20bn data centre deal has collapsed, triggering a rout in AI-linked bonds and sending the cost of default insurance sharply higher. Confidence in the AI infrastructure boom is now wobbling across global markets, with investors reassessing the sector's debt.

The bond sell-off is being driven by fears that AI data centre projects are overextended and underdelivering on returns.

Credit default swap costs on AI-linked debt spiked sharply after news of the collapsed deal broke this morning.

The rout raises fresh questions about whether the AI investment frenzy has outpaced the sector's ability to generate real revenue.

MoreThe TelegraphCollapse of £20bn data centre deal fuels AI bond routReutersCost of AI default insurance spikes as data centre confidence wobblesThe TimesData centre expansion could push up energy bills, energy chiefs warn
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