JPMorgan's Kevin Curtin on AI backlash: There's always risk with financing infrastructure projects

• Political backlash against data centers is growing across states due to concerns about power, water, and utility bills, leading to calls for moratoriums and increased local control.
• Despite these political and community risks, data center financing remains robust, with capital markets actively providing funding.
• The total CapEx for data centers and related chips is estimated at $5 trillion over the next five years (through 2030), with hyperscalers covering about $1.5 trillion and financial markets providing the remaining $3+ trillion.
• The US capital markets are described as the largest, most diversified, and robust globally, adapting to finance this critical industrial revolution through various debt and equity structures.

The AI infrastructure boom, particularly data centers, faces political backlash over resource concerns (power, water). However, JPMorgan's Kevin Curtin asserts that financing remains robust, with capital markets providing billions due to attractive risk-reward profiles, enabling a projected $5 trillion buildout over the next five years.