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AI Ecosystem · In Development

Infrastructure Finance

Understand how large AI infrastructure projects are funded and how lenders assess them.

About This Course

Financing pays for construction before the project earns cash

An AI campus needs money for land, design, equipment, construction, and integration before customers start paying for accepted service. Financing supplies that money and sets out who gets paid, who carries losses, and what happens if the plan changes. The decision also depends on customer demand, financing and execution.

We will connect AI Infrastructure Economics's economics to debt, equity, contracts, coverage measures, construction funding, refinancing, and currency exposure. The examples are hypothetical. Real financing depends on the documents, jurisdiction, assets, and counterparties involved.

Your project is a financing plan for a hypothetical 100 MW campus. Include an entity-and-contract map, sources and uses of money, a cash waterfall, a debt schedule, and stress cases. Start with a small financing example before scaling it up. Explain why lenders, shareholders, customers, and management may care about different parts of the result.

Planned Lessons

  1. Debt And Equity Have Different ClaimsCompare lending money to a business with buying a share of its ownership.
  2. Corporate Finance And Project FinanceSee the difference between funding an entire company and funding one specific project.
  3. Recourse And Guarantees Specify The ExposureIdentify who must repay a loan if a project cannot meet its obligations.
  4. Sources And Uses Must BalanceMatch all the money a project needs with the sources that will provide it.
  5. LTC And LTV Use Different DenominatorsUse the right starting value when comparing a loan with a project’s cost or value.
  6. CFADS Identifies The Cash Supporting RepaymentWork out how much cash a project has available to repay its lenders.
  7. Debt Service And DSCRCompare scheduled loan payments with the money available to make them.
  8. Debt Schedules Define Interest, Amortization, And MaturityRead when interest and loan balances must be paid over the life of a loan.
  9. Reserves And Waterfalls Control Cash PriorityFollow the rules that decide who receives a project’s cash first.
  10. What Makes A Customer Contract Bankable?Check whether a customer contract provides dependable income to support borrowing.
  11. Collateral And The Mismatch Between Asset LivesCompare what a lender can recover with how long the financed equipment will remain useful.
  12. Construction Finance: Paying Before The Asset EarnsPlan how to pay for construction before the site begins earning money.
  13. Debt Capacity Starts With Affordable PaymentsWork out how much a project can borrow from the payments it can afford.
  14. Refinancing, Maturity, And Hardware RefreshExplore what happens when a loan must be repaid around the time equipment needs replacing.
  15. Currency Risk And The Direction Of A QuoteCalculate how exchange-rate changes affect money received and payments due.
  16. Risk Transfer Has BoundariesCheck what risks remain after insurance, guarantees or contract protections are in place.
  17. Shareholder Returns And The Time Value Of MoneyCompare money returned to investors at different times.
  18. Four Readers Of The Same ProjectExamine one project through the questions asked by its owner, lender, customer and investor.