Bank of America Commits $250 Billion to U.S. Infrastructure

CoinWorld reports:

Large U.S. banks are directing more funds toward domestic infrastructure projects. The latest to join is Bank of America, which announced that it will push $250 billion into related projects in the U.S. over the next 18 months, focusing on areas such as digital infrastructure, energy, transportation, and critical minerals.

Focus on Data Centers and Power

This round of investment is closely linked to the expansion of AI. As the demand for data centers, chip manufacturing, and power rises simultaneously, Wall Street views infrastructure financing as a new long-term business direction. Goldman Sachs economists estimate that U.S. AI-related investments will reach approximately $581 billion by 2026.

Bank of America stated that this plan is related to the 250th anniversary of the founding of the United States, hence the target of $250 billion. Karen Fang, the bank's head of global infrastructure and sustainable finance, noted that current capital demands are being concentrated and released in a short time across multiple industries, with energy and power being the most urgent, as AI's demand for electricity is the most evident.

• Digital infrastructure, including data centers and semiconductors
• Energy and power infrastructure
• Core infrastructure, including transportation and critical minerals

She also mentioned that related projects typically rely not only on private capital but also require approvals and support from local governments, communities, and federal levels. Earlier this year, Bank of America participated in financing a data center project in Michigan related to Oracle and OpenAI, with a scale of 1 gigawatt.

Wall Street Giants Launch Similar Plans

Bank of America is not the first institution to launch such a plan. JPMorgan Chase was the first to announce the "Safety and Resilience Plan" last October, aiming to direct $1.5 trillion into industries it deems strategically important to the U.S. and its trading partners over the next decade, including defense and aerospace, frontier technology, energy technology, supply chains, and advanced manufacturing.

JPMorgan disclosed that since the plan's launch, related teams have completed approximately $200 billion in financing, and its investment division has committed over $4 billion in equity capital. The bank previously stated that such transactions are often more complex than traditional investment banking, with some projects falling under public-private partnership models, involving up to eight participants.

Morgan Stanley also announced this week the launch of the "U.S. Innovation Infrastructure Plan," aiming to drive approximately $1.5 trillion in fundraising, financing, and advisory services over the next decade. Its focus similarly includes strategic industries, digital and physical infrastructure, and energy facility construction.

Policy Support as a Condition for Project Implementation

A common characteristic of these projects is their large scale of funding, long construction cycles, and high dependence on policy coordination. Bank of America pointed out that without permits, approvals, and local government support, large projects are difficult to advance. The Trump administration has recently emphasized the return of manufacturing and the construction of domestic capacity, providing a policy backdrop for such financing plans.

From the banks' perspective, these plans serve both the expansion of U.S. infrastructure and their own business growth. Bank of America stated that all transactions will proceed under market conditions; JPMorgan has also emphasized that related investments are not aimed at accepting low-return projects but are meant to meet commercial return requirements.

As AI drives up the demand for electricity, computing power, and industrial support, Wall Street's financing for U.S. infrastructure continues to expand. Several major banks are trying to capture a larger share in this construction cycle.

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