Citadel Securities forecasts $500B chip financing debt by 2028 as AI infrastructure binge reshapes credit markets

Citadel Securities is projecting more than $500 billion in additional public and private debt issuance by 2028, all earmarked for one thing: the chips powering artificial intelligence data centers. The forecast lands at a moment when credit markets are already digesting record-breaking borrowing from tech companies, and the appetite shows no signs of slowing. The numbers behind the AI debt machine Citadel Securities estimates AI capital expenditure spending will climb to roughly $600 billion in 2026, up from approximately $400 billion in 2025. That 50% jump in a single year is staggering even by tech industry standards. Morgan Stanley’s projections paint an even wider picture. The firm estimates the private credit market for AI data centers could reach around $800 billion by 2028, forming part of a total projected financing gap of $1.5 trillion against a $2.9 trillion global data center capex outlook. The velocity of recent issuance tells its own story. Hyperscalers collectively pushed out about $75 billion in bonds and loans during just September and October 2025, all directed toward AI data center construction. On the secured debt side, US data center debt hit $25.4 billion in 20...