The AI buildout has introduced a new intermediation layer of neocloud providers leasing long-dated data center capacity and reselling compute on short-duration contracts, creating a credit divide. These sub-hyperscaler tenants often lack investment-grade ratings and face a duration mismatch, with 4-5 year client contracts against 15+ year data center leases. Their ability to service these long-term leases is pressured by sharply compressing GPU rental rates and eroding hardware collateral value.
Data center investments now face significant counterparty risk from neocloud tenants whose solvency may not match long-term lease obligations.