Citigroup Forms AI Infrastructure Financing Team | News

Citigroup has established a specialised banking team to advise and finance artificial intelligence infrastructure projects amid rising capital demand.

Citigroup Inc. has created a dedicated AI Infrastructure Banking team drawing senior leaders from its investment banking and corporate banking divisions to concentrate on advisory and lending for capital-intensive artificial intelligence infrastructure opportunities, according to a memo reviewed by Bloomberg News and confirmed by a Citigroup spokeswoman.

The new unit includes Ric Spencer, vice chair of technology, and Ashish Agrawal, co-head of real estate, as well as Alex Watkins, who leads technology financing; Doug Baird, head of technology corporate banking; and Ben Mortimer, a digital infrastructure mergers and acquisitions banker, all of whom retain their existing roles while coordinating across functions.

Citigroup executives convened the team in response to surging demand for capital to support the build-out of facilities and systems needed for advanced artificial intelligence computing, including data centres, communications capacity and related digital assets, according to the memo. The structure is intended to streamline cross-functional engagement across sectors such as technology, real estate, energy and digital infrastructure financing.

The initiative aligns with broader market trends in which financial institutions are mobilising resources to address what many participants view as a significant increase in financing requirements tied to next-generation computing infrastructure. Citigroup has previously forecast large-scale spending on AI infrastructure by major technology firms and other corporates, reflecting elevated investment commitments in computing and data capacity.

Dedicated teams are becoming more prevalent as banks seek to capitalise on advisory and lending opportunities linked to the anticipated expansion of AI-related facilities and services. Citigroup’s approach mirrors market participants’ efforts to capture business across the full investment and lending lifecycle of complex, capital-heavy technology projects.

The AI infrastructure team will also engage with client financing needs that traverse traditional sector boundaries, given the multifaceted nature of AI infrastructure deployment, which includes not only computing and data storage but also supporting power, networking and real estate requirements.

The formation of this specialised group comes as Wall Street and global capital markets increasingly focus on the financing demands of large-scale technology infrastructure, driven in part by projections that cumulative capital expenditures on AI computing and related facilities could reach several trillion dollars worldwide by the end of the decade.

A Citigroup spokeswoman confirmed the details of the internal memo to Bloomberg News, highlighting that the bank intends the team to facilitate both advisory services and lending opportunities across its broader corporate and investment banking platform.

The team’s creation adds to a series of strategic moves by Citigroup in recent months as it adapts its services and capabilities to meet evolving demand in technology-linked financing and risk management, even as the wider financial sector adjusts to rapid changes in capital flows and infrastructure needs.