DigitalBridge CEO Warns of Overleveraged AI Infrastructure Market
Marc Ganzi, former CEO of DigitalBridge Group (NYSE:DBRG), has warned that the current AI infrastructure market bears similarities to the late-1990s telecom bubble. With his company recently acquired by SoftBank for $4 billion in a deal set at $16 per share, Ganzi highlighted growing concerns about excessive leverage among newer data center operators who are financing projects with 70–80% loan-to-value (LTV) ratios—far above DigitalBridge’s more conservative 45%. He likened this trend to 'altitude sickness,' suggesting it could lead to instability if demand does not keep pace. Ganzi also criticized NVIDIA's chip-financing structure, calling it "priced to perfection," implying that the high valuations may be unsustainable. His comments come amid a broader warning about an influx of inexperienced players entering the market over the next few years. DigitalBridge remains one of the largest and most established data center operators in the U.S., with $40.8 billion in fee-earning equity under management as of Q1 2026.
Topics: AI infrastructure data centers leverage risk market comparison to late '90s