Banks try to offload AI data center debt as Oracle credit weakens

JPMorgan, Morgan Stanley, SMBC and MUFG are exploring significant risk transfers to move AI-linked loans off their books, according to a Financial Times report.

A group including JPMorgan and MUFG has spent more than six months trying to distribute $38 billion in construction debt tied to an Oracle-leased data center project in Texas and Wisconsin, and some lenders are selling pieces at a discount.