Axa Warns on Data Center ‘Gambles’ as Private Credit Risks Rise

French insurer Axa SA said it’s exercising greater caution on the artificial intelligence build-out when backing financing for the sector, amid growing awareness of emerging risks in private markets.

“We are convinced of the medium-term trend, but we want to avoid financing technological gambles,” AXA Group Chief Investment Officer Jean-Baptiste Tricot said in an interview in Paris. AI infrastructure has seen “astronomical volumes allocated in recent months.”

Data centers — the huge real estate developments housing equipment generating AI computing power — are emerging as a new worry spot given the hundreds of billions of dollars being invested in as-yet ...