Bank of America (NYSE: BAC) has announced that it plans to spend $250 billion building US infrastructure in the next 18 months. The bank plans to focus on data centers, chips and power generation.
The plan lands as a major boost for stakeholders of the AI and computing buildout, even as data centers ramp up pressure on the electrical grid.
What will Bank of America fund with $250B commitment?
The bank has named the program its Critical Infrastructure Finance Initiative, in time for the 250th anniversary of America. It will run from January 1, 2026, to July 4, 2027. It will not be a single fund though; rather, the figure is made up of investing, eligible lending, capital market deals, and advisory work the bank will handle over the 18-month period.
This is not too dissimilar from the methodology used when the bank set up a $1.5 trillion, 10-year sustainable finance goal.
The spending will be divided into 3 parts: digital infrastructure, energy and power and core infrastructure.
- Digital infrastructure includes data centers, computing hardware, chips, telecommunications, and semiconductors.
- Energy and power is made up of conventional and renewable generation, storage, and distribution.
- Core infrastructure takes care of transportation, grid optimization, water systems, and critical minerals and mining.
Why Bank of America wants to enter AI
For those in the crypto and tech world, the digital infrastructure section catches the eye, especially as the US is building AI data centers at an astronomical pace and straining power grids in the process.
The increased demand for computing power, electricity, and semiconductors is the main catalyst behind the influx of capital from banks.
Karen Fang, who serves as Bank of America’s global head of infrastructure and sustainable finance and co-head of global capital solutions, stated succinctly that “Old infrastructure has to be modernized.”
A number that demonstrates the project’s size
The bank claims the project will create tens of thousands of jobs in construction, manufacturing, technology, and operations. It made reference to previous workforce expenditures: ~$40 million in 2025 for over 730 workforce-development partners in 97 US markets. The bank ended up connecting 90,000 people to jobs, with over 290,000 gaining access to training,
The pledge by Bank of America is just one of many pledges by financial institutions. Morgan Stanley announced a 10-year, $1.5 trillion, decade-long innovation project, while JPMorgan Chase pledged $1.5 trillion in 2025 to sectors linked to US economic security.
What the spending leave unsettled
The reaction on the stock market was tepid. Bank of America shares (BAC) sold at $64.72, a 1.1% increase the same day the bank made the announcement.
However, there remain some unresolved issues amid increased spending on AI infrastructure. Morgan Stanley plans to spend 60% of its $1.4 trillion pledge on imported computers. Which means most of the money will be spent on foreign goods rather than US AI infrastructure.
Bank of America, however, has not stated how much of its $250 billion will be spent directly on US AI infrastructure.
