Data centers run on debt. That was a problem for bonds this year — and it’s only going to get worse.

Nov 7, 2026 12:37 AM · MarketWatch

The copious amounts of debt rolling out to finance the artificial-intelligence buildout has rattled the bond market this year, as borrowers have needed to pay higher interest rates to find takers for all the supply.

Don’t expect the midterm election results to change that. As Democrats take control of Congress in January, some on Wall Street think any slowdown in the building of data centers could reduce the need for AI builders to borrow. That could reduce bond supply, and provide some relief to bonds now underwater in portfolios.

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Original source: MarketWatch