---
title: "Howard Marks Warns $5 Trillion AI Boom Could Keep Rates Higher: 3 Infrastructure ETFs to Watch"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/299886904.md"
description: "Howard Marks warns that over $5 trillion in global AI data center investment will compete with federal borrowing for capital, creating upward pressure on interest rates. This surge in demand for debt and equity capital, combined with U.S. Treasury issuance, suggests rates will remain high. The article highlights four infrastructure-related ETFs to watch: DTCR, SRVR, XLU, and SOXX, which track data centers, utilities, and semiconductors benefiting from this trend."
datetime: "2026-09-23T11:03:07.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/299886904.md)
  - [en](https://longbridge.com/en/news/299886904.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/299886904.md)
generator: "portal-rs"
---

# Howard Marks Warns $5 Trillion AI Boom Could Keep Rates Higher: 3 Infrastructure ETFs to Watch

Oaktree Capital Management co-founder **Howard Marks** argued that more than $5 trillion in projected global AI data-center investment could compete with federal borrowing for capital, putting upward pressure on interest rates.

## **The AI Capital Crunch**

According to Marks’ Sept. 22 memo, “Shall We Repeal the Laws of Economics – Part III,” the U.S. government’s need to fund massive federal deficits is colliding with the capital requirements of the technology sector.

Marks wrote, “The need to fund the massive federal deficits comes on top of the routine need for capital that accompanies the growth of the U.S. economy, and to that is added the multi-trillion-dollar investment in AI.”

He noted that this combination generates strong demand for both debt and equity capital. “The simplest rule of economics is that increased demand for something causes its price to rise,” Marks stated.

“It’s entirely understandable, therefore, that this growing demand for capital should put upward pressure on the price of money: interest rates,” he added.

 **Read Also: Billionaire Howard Marks Says America’s $40T Debt Problem Isn’t a Reason to Sell Stocks. Here’s Where ETFs Come In** 

## **Upward Pressure on Yields**

Marks cited a projection from McKinsey & Company, which estimated that “over $5 trillion will be spent worldwide through 2030 on data centers directly related to AI.”

Whether this funding is borrowed or generated through equity sales, Marks explained that it “will draw from the total supply of available capital, affecting the interest rates bonds must pay to attract investors.”

Combined with the U.S. Treasury’s need to refinance maturing securities and finance roughly $2 trillion in new net issuance, Marks argued this dynamic adds “to the supply investors must absorb, putting upward pressure on yields and arguing against the likelihood of a decline in interest rates anytime soon.”

## **ETF Infrastructure Expressions**

While Marks discussed macroeconomic trends rather than specific securities, his focus on the $5 trillion AI data center buildout highlights distinct market sectors. Investors monitoring these infrastructure themes can track related Exchange Traded Funds.

The **Global X Data Center & Digital Infrastructure ETF** (NASDAQ:DTCR) and the **Pacer Data & Infrastructure Real Estate ETF** (NYSE:SRVR) hold companies that operate the physical data centers Marks referenced. The **State Street Utilities Select Sector SPDR ETF** (NYSE:XLU) tracks the utilities sector responsible for the power generation required by AI infrastructure. Finally, the **iShares Semiconductor ETF** (NASDAQ:SOXX) tracks the hardware companies absorbing the multi-trillion-dollar investments Marks described.

**Stocks**

**1-Month**

**6-Months**

**YTD**

**1-Year**

**5-Years**

DTCR

1.66%

19.96%

35.74%

39.49%

60.57%

XLU

-5.24%

-9.23%

-5.06%

-4.86%

23.64%

SOXX

10.14%

72.26%

87.85%

112.27%

266.96%

SRVR

-4.73%

-2.90%

4.72%

-5.66%

-27.85%

 **Read Also: Stock Market Today: Dow Jones, S&P 500 Futures Gain After Trump Threatens to 'Annihilate' Iran at UNGA—KB Home, Worthington, IONQ in Focus** 

***Disclaimer:*** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.*

*Photo courtesy: Shutterstock*

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**