JPMorgan Chase (JPM), Morgan Stanley (MS), SMBC and MUFG (MUFC) are exploring ways to distribute data center-related debt to broader investors as AI infrastructure financing strains bank balance sheets, the Financial Times reported Sunday, citing unnamed people familiar with the matter.

The banks are looking at private loan sales and significant risk transfers, or SRTs, to reduce exposure to large individual borrowers and free up lending capacity, according to Financial Times.

The banks are looking at private loan sales and significant risk transfers, or SRTs, to reduce exposure to large individual borrowers and free up lending capacity, according to Financial Times.

Lenders including JPMorgan and MUFG have spent more than six months distribution $38.00 billion in construction debt tied to a data center leased to Oracle (ORCL), with some banks seeking to sell loans at a discount to non-bank lenders, the report said.

JP Morgan and Morgan Stanley did not immediately respond to MT Newswires' requests for comment, while efforts to reach SMBC and MUFG were not successful.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)