Citadel Securities is projecting another major wave of borrowing tied to the chip boom, even as credit investors digest a period of heavy fundraising for data centers. The firm expects more than $500 billion of additional debt to be raised in public and private markets by 2028 to help finance the chips needed for continued technology expansion.
The forecast suggests that funding pressure is shifting beyond data center construction alone and further into the semiconductor supply chain. While lenders and bond buyers have already seen record borrowing linked to infrastructure for advanced computing, the latest view implies that technology companies still have significant financing needs ahead.
That points to a prolonged debt cycle around the buildout of AI-related hardware and computing capacity. If Citadel Securities' outlook proves accurate, chip financing could remain a major theme for both capital markets and private credit over the next several years.
The broader takeaway is that demand for chips is still driving large capital requirements across the tech sector. Even with signs that credit markets may be reaching their limit on some forms of data center debt, the need to fund semiconductor growth appears far from over.
