HSBC CEO warns the AI boom won’t make every data center a good bet

HSBC CEO Georges Elhedery tells CNBC that investing in data centres tied to the AI boom is not a one-size-fits-all proposition. He argues that the viability of deals depends on the quality of the tenants and, crucially, the pricing of the contracts supporting cash flows. In his view, some infrastructure is likely “more challenging” to underwrite than investors assume, implying dispersion in credit risk inside the same broad theme.

The article places this caution against the backdrop of rapid expansion plans for data centres. It cites McKinsey’s estimate that global data-centre spending could reach $7 trillion by 2030, alongside the observation that hyperscalers are using more bond issuance to fund build-outs. CNBC also notes commentary from Mohamed El-Erian that bond issuance by large AI-linked borrowers is adding competition for financing, with governments also borrowing and refinancing at higher interest rates.

CNBC links these dynamics to market stress points: it states that bond yields have risen to multi-decade highs in 2026 amid concerns about deficits and sticky inflation, and it references JPMorgan’s earlier estimate of $4.1 trillion of AI-related debt issuance over the decade. For FX traders, the key watch is whether higher yields and financing competition translate into tighter financial conditions for risk assets and corporates beyond the tech sector.

What to watch next is whether underwriting standards tighten further—if contract terms deteriorate or refinancing risk increases for AI/data-centre borrowers, that can affect global credit spreads and risk appetite, with knock-on implications for currencies sensitive to changes in rates and funding conditions.