'Subprime data center crisis' could threaten the global economy in a way similar to the 2008 subprime mortgage…

• Bloomberg pegs outstanding AI data center debt above $500 billion right now
• CoreWeave isolates each loan inside its own separate special purpose vehicle
• Parent companies report only a fraction of their real total exposure, hiding the rest in shell entities

A growing body of analysts now warns that AI data center debt increasingly resembles the subprime mortgages that triggered the 2008 financial crisis.

Much of that debt is issued through special purpose vehicles, structures that keep billions of dollars off corporate balance sheets entirely.

Bloomberg estimates more than $500 billion in outstanding AI data center debt, with roughly $200 billion held by private credit funds.

A debt structure built on theoretical revenue

Special Purpose Vehicles (SPVs) raise debt to build data centers, then repay creditors only once paying customers begin generating revenue.

That structure is exactly why CoreWeave has raised billions through separate SPVs for individual loans, including an $8.5...

Copyright of this story solely belongs to techradar.com. To see the full text click HERE