Banks are now trying to offload the AI data center debt they just underwrote

Banks have invested heavily in data centers for artificial intelligence and machine learning, but now they're looking to offload the debt associated with these investments. This trend is not new, as banks have been trying to sell off their non-core assets, but the recent trend is notable given the significant amount of debt involved. According to a report by Debtwire, banks have invested around $40 billion in data center deals in 2022 alone, with many of these deals being related to AI and machine learning infrastructure. The report also notes that many of these investments were made in 2021 and 2022, when the market for data center deals was booming. However, with the current economic downturn, banks are now looking to offload these assets to reduce their debt burden.