AI Buildout Fuels Biggest Jump in US Bank Lending Since 2020

Commercial and industrial loans at large US banks climbed 11.4% year over year in October, reaching $1.6 trillion, according to The Kobeissi Letter. That's the highest level since June 2020 and the fastest annual growth since February 2023. The loan book is swelling, and the AI boom is doing the heavy lifting.

The momentum has been building for months. In the third quarter, C&I loans at the 25 largest US banks grew nearly 10% year over year — the strongest showing in a decade once pandemic-era distortions are stripped out. It marks a hard pivot from the fourth quarter of 2025, when those same loans were contracting at an 8% annual rate.

Who's doing the borrowing? Big Tech companies and data-center developers, who need serious capital to bankroll AI infrastructure projects. Regional lenders are getting in on the action too, extending credit to construction firms and other businesses riding the investment wave.

The bigger story hiding in the numbers: the data-center buildout is increasingly being paid for with debt rather than cash flow. Cheap-ish credit and an AI arms race are proving a potent combination — and banks are only too happy to write the checks.

For now, the trend line points one way. As long as AI spending keeps roaring, expect bank loan books to keep growing right alongside the server racks.