AI infra is a $1.8T opportunity for private credit: Report

As artificial intelligence (AI) grows more advanced, it also grows more expensive.

Companies aren’t just investing in software. They’re also pouring money into physical infrastructure like data centers, chips, and cooling systems. And now, a new player is stepping in to foot the bill: private credit.

As per a Bloomberg News report citing estimates by the Carlyle Group, more than $1.8 trillion will be needed by 2030 to build out AI infrastructure. That’s a huge number and traditional lenders like banks may not be able to meet it alone. Private credit firms are filling that gap, offering faster, more flexible funding.

What is private credit?

Private credit refers to loans made by non-bank institutions such as investment firms or private funds. Unlike banks, these lenders can move faster and offer more tailored financing. That makes them appealing to tech companies working on tight timelines and massive builds.

The Bloomberg News article reported Carlyle CEO Harvey Schwartz saying in a recent letter that private markets can meet some of the growing demands of the AI sector.

Others echo that view. Mark Van Zandt, co-head of real estate at King Street Capital, pointed out that the scale of AI infrastructure needs has outgrown traditional tools like asset-backed bonds.

“The capital needs are enormous. There’s a demand-supply imbalance in the market that will take some time to get resolved," said Van Zandt, as per the report.

Real deals are already happening

This isn’t just a forecast. It’s already reportedly happening:

• Nscale, a data center startup, is seeking $1.8 billion in private credit, with ByteDance expected to partner.
• Meta is exploring options to raise billions for new U.S. data centers. Firms like Apollo and KKR are among the potential lenders.

Ares Management thinks private credit could end up financing around $5.5 trillion in infrastructure projects, including AI, by 2035.

Rising concerns from regulators

But all this growth comes with scrutiny. A recent Federal Reserve survey found that about 20% of respondents see stress in the private credit sector. There’s growing concern about what happens if risks in these markets go unchecked.

The International Monetary Fund (IMF) has also weighed in, urging tighter oversight of nonbank financial institutions. Better reporting and transparency, the IMF says, are key to avoiding hidden risks.