Woofun AI reports that Morgan Stanley is actively promoting leveraged loan financing to data center developers, positioning it as a superior alternative to traditional bond financing. This strategic pivot reflects a broader trend in infrastructure capital markets where floating-rate instruments are gaining traction for high-leverage entities.

The bank anticipates that the issuance of these specific loans will reach approximately $15 billion within the current fiscal year. Leveraged loans, defined as floating-rate instruments typically extended to companies with lower credit ratings or elevated leverage ratios, offer distinct advantages in the current rate environment for data center expansion.