HSBC CEO warns the AI boom won’t make every data center a good bet

What happened: HSBC CEO Georges Elhedery told CNBC that AI is transformational for the bank, but investors must be selective when investing in data centers. Key numbers: HSBC held close to $3 trillion in assets and was ranked the seventh-largest bank globally by S&P Global last year. McKinsey sees global data center spending reaching $7 trillion by 2030. Why it matters: Elhedery said investors should examine the quality of tenancy agreements and contract pricing, noting some are more challenging than others. The comments come as AI borrowing becomes a source of tension in financial markets. Market: -1.7% today ($92.96), +19.5% YTD, 0.8x vol — as of 22:46 UTC Coverage: 3 outlets in 24h

HSBC CEO Georges Elhedery told CNBC that AI is transformational for the bank, but investors must be selective when investing in data centers.

Elhedery said investors should examine the quality of tenancy agreements and contract pricing, noting some are more challenging than others. The comments come as AI borrowing becomes a source of tension in financial markets. Market: -1.7% today ($92.96), +19.5% YTD, 0.8x vol — as of 22:46 UTC