# Moody’s Warns AI Borrowing Could Raise Private-Credit Refinancing Risk

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/42302
Published: 2026-10-28T03:35:28.000Z
Updated: 2026-10-28T03:35:28.000Z
Section: Business

> Moody’s expects the five largest U.S. hyperscalers and CoreWeave to spend nearly $1 trillion on capital projects in 2027. About 17% of 607 borrowers it tracks use payment-in-kind interest.

Moody’s Ratings warned that lending for artificial intelligence infrastructure is broadening private credit beyond its traditional corporate focus, while a cluster of loan maturities could leave weaker borrowers facing refinancing pressure from 2027 through 2029.

The financing needs for AI have spread beyond data-center construction to land, power, semiconductors, graphics processing units and tensor processing units. Moody’s expects the five largest U.S. hyperscale cloud providers and CoreWeave to spend nearly $1 trillion on capital projects in 2027. The expected funding mix includes operating cash flow, debt, joint ventures and special-purpose vehicles.

The loans coming due over the three-year period will test whether weaker borrowers can refinance when interest rates are higher, Moody’s said. Among the 607 borrowers it tracks, about 17% use payment-in-kind interest, a structure that lets them defer cash interest payments by adding the interest to their debt.

Moody’s also warned that financial ties among technology companies, chipmakers and AI developers could spread losses. Those companies are investing in, lending to and buying from one another, leaving connected exposures vulnerable to deteriorating at the same time if the sector falls into a downturn.