Big Banks Have Nearly $1 Trillion Tied to AI. What If the Boom Cracks?

The largest US bank holding companies have close to $1 trillion in exposure to firms behind the AI buildout. The Federal Reserve (Fed) disclosed the figure in its November Financial Stability Report. The Fed still describes the banking system as sound, with high capital ratios. Yet 87% of market contacts surveyed by the New York Fed named AI as a risk, up from 50% in spring. So can banks absorb a hit if the boom cools? How Banks Got Pulled Into the Data Center Race The answer starts with how the buildout is being paid for. This year’s borrowing for advanced computing infrastructure passed $680 billion by October, the Fed’s report showed. That is about 5 times the $130 billion raised in all of 2023.

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