The Indicator from Planet Money · Wednesday, September 16, 2026
The massive influx of AI-related bonds presents new risks, including potential technological obsolescence and lease renewal issues. Jonathan Mody of Aberdeen Investments highlights that some bond deals are tied to complex financing structures with a lack of standardization, and leases for data centers can extend for 15-30 years, raising questions about future demand and technology.
“Each contract seems to be written a little bit differently. There's a lack of standardization there. And that's a risk, ultimately.”
“What if the hyperscalers get it wrong on their forecasts and they're stuck with data centers they don't actually need?”
“These are long-term lease structures, 15, 20 years, in some instances 30 years lease structures or lease terms. And, you know, who's to say that there is need for that amount of space in the data center in 20 years or 30 years time?”