HSBC says customer commitments can help developers secure financing for data centers, while lease termination rights may leave builders carrying execution risk if projects miss agreed terms.
HSBC CEO Georges Elhedery told CNBC on Tuesday, Oct. 20, that investors should weigh tenant agreements and contract prices when evaluating data center projects. His remarks focus attention on the contractual conditions behind construction financing, alongside demand for AI computing.
At a 2025 discussion published by HSBC, AirTrunk Chief Financial and Commercial Officer Prashant Murthy said developers need a customer lined up to obtain financing for large facilities. HSBC said a tenant may end its lease if a developer fails to deliver on time, meet specifications or stay within budget.
A customer commitment can support financing without removing the developer’s execution risk. If a project misses its terms, the builder may lose the tenant whose agreement helped support funding and still face the costs of a delayed or over-budget facility.
McKinsey estimates that meeting worldwide demand for data center capacity will require $6.7 trillion in cumulative investment through 2030, including $5.2 trillion for AI workloads. The consultancy also identifies uncertain future demand and competition to build AI capacity as investment drivers and risks. That combination can encourage construction while leaving developers exposed to uncertainty over future demand.
The market-wide estimate does not determine whether any single project can meet its contract conditions. HSBC’s comments put the focus on the customer, price and delivery requirements that apply to each facility.
HSBC also participated as a joint mandated lead arranger and underwriter in AirTrunk’s A$16 billion refinancing in 2025, after AirTrunk secured a sustainability-linked loan in 2021 and refinanced it in 2023. EconoTimes previously reported on HSBC’s role in the AirTrunk refinancing.
