It was also the leverage on leverage (and that systemically important yet fragile financial institutions were heavily exposed) that made the bubble unwind so catastrophic. This asset-liability mismatch between data center developers and their tenants will strain developers’ creditworthiness without guarantees from market-leading tech companies. ● Circular financing, or “roundabouting,” among so-called hyperscaler tenants—the leading tech companies and AI service providers—create an interlocking liability structure across the sector. Investor appetite for data-center debt is so strong that some money managers have booked billion-dollar gains in a matter of days, even before construction of the facilities they are financing is complete. Back to the Journal:Tech executives see more risk in underbuilding than overbuilding… But some tech companies are weaker financially than others.