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Bank of America unveils $250 billion plan to rebuild US infrastructure

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Bank of America has launched a $250 billion initiative to finance US infrastructure projects. The bank says the money will support data centers, energy, semiconductors and transportation over the next several years. The announcement puts the bank at the center of a building boom driven by artificial intelligence and reshoring.

A bank-sized bet on American construction

The program combines loans, investments and financing arrangements. Bank of America said it will work with developers, utilities and manufacturers to move projects from planning to construction. Executives described the effort as a response to record demand for new power capacity and industrial facilities. The bank did not set a strict timeline, but analysts expect the money to flow steadily as projects clear permitting and financing hurdles.

Data centers and chips lead the list

Data centers are the biggest driver. AI companies need enormous computing power, and each large facility consumes as much electricity as a small city. The bank also named semiconductors as a priority. Chipmakers are expanding US factories under federal incentive programs, and those plants cost tens of billions of dollars each. Energy projects, including natural gas plants and renewable farms, round out the list because new facilities need reliable power.

Why banks are piling into infrastructure

Banks see infrastructure lending as a rare growth area. Demand is strong, and projects often come with long-term contracts that reduce risk. The US government has also made it easier to finance certain projects through tax credits and loan guarantees. Industry analysts say other large banks are preparing similar programs. The race to build is not limited to the private sector; utilities are raising rates to pay for new grid connections. For Bank of America, the $250 billion figure signals that infrastructure has become a core business, not a side project.



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Source: Fox Business