Tenant Concentration Risk and Hyperscaler Credit Quality

An audience member asks how lenders manage concentration risk when major hyperscalers such as Meta, Google, and Amazon dominate data centre tenancy. Tom Johnson explains that while single-tenant hyperscale deals carry concentration risk, the AAA credit ratings and strong balance sheets of these tenants make them desirable counterparties. He contrasts this with the more cautious approach required for sub-investment grade tenants, and the panel closes with final remarks.