How AI and Data Centre Boom Reshape Supply Chain Finance: Insights from US Trade Finance Leaders

Introduction: Digital Infrastructure Investment Drives Structural Growth in Supply Chain Finance

The rapid development of artificial intelligence (AI) and data centre construction is fueling an unprecedented wave of digital infrastructure investment across North America. This trend is not only transforming the technology industry landscape but also having profound implications for supply chain finance and trade financing. In December 2025, Global Trade Review (GTR) convened a high-level roundtable in New York, bringing together trade finance leaders from America’s top banks to discuss how AI and data centre construction are reshaping the future of supply chain finance. Participants included Geoff Brady, Global Head of Trade and Supply Chain Finance at Bank of America; Heather Crowley, Global Head of Trade and Working Capital Product at JP Morgan; Antonio Federico, Head of Trade and Working Capital Sales, North America at Citi; and other industry leaders. Their discussion revealed that supply chain finance is evolving from a traditional working capital management tool into a strategic financing solution supporting digital infrastructure development.

Currently, AI-driven computing demands are growing at an unprecedented pace, driving exponential expansion in data centre construction. According to industry projections, data centre investments in North America will reach hundreds of billions of dollars by 2026. This massive infrastructure development requires not only traditional project financing but also innovative supply chain finance solutions to support complex supply networks. From the extraction and processing of critical minerals to semiconductor manufacturing and assembly, and finally to data centre construction and operation, each stage involves substantial trade finance and supply chain finance requirements. Trade finance leaders recognize that this trend is creating entirely new financing opportunities while simultaneously challenging traditional financial products and services.

More importantly, the AI and data centre construction boom is driving deep integration between supply chain finance and project financing. Traditionally, trade finance has focused on short-term working capital needs, while project financing has addressed long-term infrastructure investments. However, in the context of digital infrastructure development, these two financing models are increasingly converging. Banks need to provide clients with end-to-end financing solutions spanning from raw material procurement to final product delivery, requiring financial institutions to break down internal departmental barriers and establish cross-product collaboration mechanisms. Caryn Pace Messenger of Bank of America noted that the company has already established strong internal partnerships between global capital solutions and trade and working capital divisions to address this challenge.

“In our business of trade and working capital, there’s nothing like a new growth area that requires a lot of set-up costs and scarce resources to make everyone realise just how important supply chain management is for corporates to succeed.” — Jonathan Richman, Head of US Trade Finance and Working Capital Sales, Santander

Core Perspectives from Trade Finance Leaders: From Traditional Services to Innovative Solutions

The roundtable discussion revealed trade finance leaders’ deep understanding of current market trends. Geoff Brady of Bank of America, serving as host and chair, guided in-depth discussions about how AI and data centre construction are impacting trade financing. Participants unanimously agreed that this trend is creating unprecedented financing demands while simultaneously pushing financial institutions to develop new products and services. Jonathan Richman noted that trade and working capital businesses face a unique opportunity: new growth areas require substantial setup costs and scarce resources, making corporations increasingly aware of supply chain management’s importance. This awareness is translating into greater demand for traditional trade services, including letters of credit, supply chain finance, and receivables finance.

However, merely providing traditional services is no longer sufficient to meet client needs. Trade finance leaders emphasized that corporations are seeking more flexible and innovative solutions. Inventory finance as a critical tool is gaining increasing attention. With tight supplies of critical components like chips, companies need to build buffer stocks to ensure supply chain stability. Richman pointed out that inventory finance delivers greater value proposition than supply chain finance, despite its more complex implementation process. This perspective was echoed by other participants, who anticipate inventory finance becoming more prevalent in coming years, particularly in capital-intensive projects like data centre construction.

Another significant trend is the application of contract monetisation. Within the AI and data centre construction ecosystem, there often exists a wide disparity in creditworthiness among participants: on one end are highly creditworthy offtakers, and on the other are suppliers needing flexible and affordable financing. Trade bankers’ role is to bridge this gap through innovative financing structures that convert future contract cash flows into current working capital. This financing model not only helps suppliers obtain necessary funding but also assists offtakers in ensuring supply chain stability. Antonio Federico emphasized that clients increasingly seek partners who can support their full investment agenda over the next three to five years, not just short-term working capital solutions.

Inventory Finance: Evolution from Peripheral Tool to Core Solution

Inventory finance has long been a relatively niche tool in the trade finance toolkit, but in the context of AI and data centre construction, it is gradually moving from the periphery to the centre. The roundtable discussion explored both the opportunities and challenges of inventory finance. João Galvão noted that although inventory finance has been discussed for ten years, many clients remain insufficiently educated about its value. He shared experiences of discussing inventory finance with clients for months, only to end up stalled with accounting teams. This educational barrier represents a primary challenge to inventory finance adoption.

Nevertheless, participants agreed that inventory finance’s potential far exceeds current adoption rates. Jonathan Richman drew parallels between inventory finance and supply chain finance twenty years ago: back then, supply chain finance was also viewed as complex and difficult to implement, but over time it became a mainstream financing tool. He believes inventory finance will undergo similar evolution, particularly driven by capital-intensive projects like data centre construction. The core value of inventory finance lies in its ability to provide liquidity for companies holding substantial inventory while helping them optimize inventory management and reduce carrying costs.

Pricing represents another challenge for inventory finance. Galvão pointed out that most banks want to provide inventory finance for investment-grade names, but these clients typically have lower funding costs, raising questions about inventory finance’s price competitiveness. However, as supply chain complexity increases and inventory values rise, corporate demand for inventory finance is growing. Antonio Federico added that after the pandemic-driven expansion of supply chain finance, the industry is now shifting toward financing and protecting inventory itself, driven by supply constraints and a more complex geopolitical environment. This shift reflects how supply chain finance is evolving from mere payment solutions into comprehensive supply chain risk management tools.

Technology Digitization and AI Applications: Transformation Engines for Trade Finance

Technology digitization and artificial intelligence applications are profoundly changing how trade finance operates. The roundtable discussion focused on the industry’s progress and challenges in its trade technology journey. Jonathan Richman noted that the industry faces strong drivers to use technology for improving risk management efficiency and proposal/pitch processes. However, the challenge lies in the industry’s continued reliance on legacy systems, with outdated processes involving paper documents, different legal systems, multiple parties, and substantial complexity still prevalent.

Despite these challenges, the trade finance industry has made significant progress in specific areas. Heather Crowley emphasized that the biggest opportunities exist where banks can control the ecosystem. She noted that requiring all parties on a transaction to use the same system is extremely difficult, which explains why many fintechs fail at scale. In contrast, banks have realized tangible benefits from digitizing internal back-office operations, where hundreds of employees can use digital tools consistently, achieving efficiency gains. This internal digitization lays the foundation for broader external digitization.

AI adoption in trade finance is accelerating. Alban Miranda of BNY shared the company’s leadership in AI adoption, with nearly universal integration across teams. From streamlining letter of credit processing and compliance checks to fraud screening, onboarding, and issue resolution, AI is helping banks transform unstructured data into actionable insights. This means fewer routine tasks and more focus on solving complex client challenges. Miranda also noted that the company’s AI capabilities extend to trade services, using large language models to analyze documents, build checklists, and improve processes. By partnering with fintechs, banks are accelerating innovation and opening new pathways, helping clients access niche solutions and market opportunities faster.

Geopolitics and Supply Chain Restructuring: New Challenges and Opportunities for Trade Finance

Geopolitical tensions and supply chain restructuring are having profound impacts on trade finance. The roundtable discussion revealed how these macro trends are changing client financing needs and behaviors. Heather Crowley noted that re-shoring and ally-shoring have become themes, as traditional low-cost sourcing locations may no longer be the most cost-efficient options. Companies are looking for these opportunities, particularly in the US, where imports of many goods increased rapidly to beat tariffs, driving increased inventory finance discussions.

Dyanne Carenza added that the market has seen much more volatility in the last nine to ten months than there had been for a while. But this has also resulted in shifts—statistics show that for the US, Mexico is now the largest trading partner, where China had been for many years. This supply chain diversification and offloading trend is changing trade patterns. Trade agreements, some currently under renegotiation, have facilitated these flows. The three economies in one of the larger blocs—the US, Canada, and Mexico—have all benefited in particular industries. Carenza noted that clients are willing to pay a little bit more, and perhaps lower their margins, because they want that trusted network and want to solidify supplier relationships so they can source and provide the end product to their clients.

Antonio Federico analyzed this trend from a broader perspective. He noted that across key global trade corridors, volumes have effectively doubled over the past five years, reflecting a structural shift in global trade. As a result, clients are seeking deeper, more credible banking partnerships—not only in trade but also across liquidity, payments, FX, and other financial services. This comprehensive partnership demand is pushing banks to break down internal barriers and provide integrated solutions. Clients are no longer satisfied with fragmented products but want to see the entire flow and understand how a particular bank can be a complete financial services provider.

Industry Outlook and Strategic Recommendations: Building the Future Trade Finance Ecosystem

Based on the roundtable’s in-depth discussion, trade finance leaders offered perspectives and recommendations for the industry’s future. João Galvão emphasized that the trend toward vertical integration in supply chains is becoming increasingly evident across various markets. What’s also becoming increasingly apparent is that financing these structures on a single-bank basis is quite ambitious. Adopting a more coordinated, multi-bank approach enables the industry to better meet the scale and complexity of these needs. This represents a unique opportunity in terms of demand for finance that he personally hasn’t seen in his career. Everyone hears the numbers about trillions of dollars in direct investment, and that is absolutely what will be needed across working capital, export credit agency finance, long-term finance, contract monetisation, and so on, at scale.

On the technology front, Caryn Pace Messenger noted that it’s incumbent upon the trade industry to embrace a mindset shift. Many existing trade products were born in an analogue world, and simply overlaying technology won’t untap their true value. To capture the full potential of the digital landscape and leverage data, digital capabilities need to be built in from inception. If we were to reimagine solutions from scratch with today’s technology, that would be the hopeful outlook. This fundamental mindset shift is crucial for trade finance’s future.

Finally, participants emphasized the importance of internal collaboration. Michael Stitt pointed out that the biggest roadblock is the different cultures inside institutions. In terms of collaboration, US Bank has done the same with virtual cards, and it’s been wildly successful. When you start talking about cross-project finance, getting all these teams to interoperate and see the client solution as the goal, people get it intellectually, but the challenge is getting leadership behind it. It’s difficult and can be exhausting, but the effort is worth it. If clients demand that kind of solution, it becomes much easier internally to mobilise resources. This client-centric collaborative culture will be key to future trade finance success.

Source: Global Trade Review (GTR)