Banks Bet Big on AI Data Centers as Bitcoin Miners Seek Higher Returns

Top banks are backing Bitcoin miners who are pivoting to AI data center infrastructure. The shift is driven by higher returns on investment in AI data centers, which can earn far more per unit of power than Bitcoin mining.

Banks consider it more beneficial to finance the construction of AI data centers, despite their higher costs. According to MARA CEO Fred Thiel, building an AI data center costs between $10 million and $15 million per megawatt, compared to around $1 million per megawatt for a Bitcoin mining site.

Banks are adopting a 'capital-light' model by acting as originators and syndicators of debt that is then offloaded onto private credit funds and institutional investors. This allows them to manage the capital requirements for AI computing infrastructure, which has become increasingly attractive due to its higher earning potential.