Goldman CEO Solomon says AI financing remains strong despite market jitters

Goldman Sachs CEO David Solomon said during the bank's October earnings call that demand for AI computing capacity continues to exceed supply, keeping financing demand strong even as market jitters and higher borrowing costs raise questions about returns on planned data centers. Coinpaper reported that Solomon cited studies estimating US data center construction could require more than $10 trillion through 2032, equivalent to approximately 3.6% of annual US GDP. Goldman Sachs' October 28 research estimated AI infrastructure investment could reach $8 trillion over four to five years, while other forecasts suggest spending could exceed $10 trillion. The projections cover overlapping investment categories and different periods, so they should not be added together.

Solomon said the opportunity extends beyond traditional corporate lending. Investment banks can arrange debt issuance, structure project financing, connect developers with institutional investors and manage capital for infrastructure funds. Goldman is also involved in Nvidia's initiative to mobilize more than $500 billion in third-party capital for AI infrastructure, although the plan depends on attracting investors rather than representing completed financing.

Despite strong demand, Solomon warned that growing capital requirements could place upward pressure on financing rates, reducing the profitability of certain developments. CoreWeave reported approximately $104 billion in revenue backlog but also recorded $640 million in quarterly net interest expense during its second quarter, illustrating how substantial customer commitments do not automatically translate into positive earnings or cash flow. Credit markets have shown signs of strain, with approximately $18 billion in Oracle-linked loans reportedly trading below face value as investors reassessed data center financing exposure.

Goldman Sachs Research forecasts global data center electricity demand will increase 170% between 2025 and 2030, with more than 60% of that growth coming from the United States. Grid connection delays, equipment shortages and local opposition could postpone projects, increasing borrowing expenses before facilities begin generating revenue. These challenges have already complicated America's planned $10 trillion infrastructure expansion, with developers confronting uncertain timelines for construction and power availability.