BofA to plow $250 billion into critical infrastructure projects

Bank of America has announced a $250 billion plan to invest in critical US infrastructure over the next year, joining other major banks in pushing for innovation across the country. The investment will focus on various sectors, including data centers, compute power, renewable energy generation, energy storage, natural gas, electricity transmission, and critical minerals and mining.

Bank of America's goal is to bolster energy security, create jobs, and enhance economic competitiveness, according to Karen Fang, global head of infrastructure and sustainable finance. The bank's initiative is part of a broader trend of infrastructure projects across US banks, with Morgan Stanley recently pledging $1.5 trillion for capital raising, financing, and advisory over the next decade.

The US faces aging infrastructure alongside a surge in artificial-intelligence data-center capacity, which is putting strain on the power grid. Unlike its competitor JPMorgan Chase & Co., which committed $1.5 trillion to industries that strengthen US economic security and resiliency, Bank of America's pledge is tied to the country's 250th birthday and will be implemented through July 4 of the following year.

The investment will come from Bank of America's balance sheet as well as transactions it arranges or advises on, emphasizing the importance of infrastructure investing as a unifying theme.