BofA Commits US$250bn for American Energy & Infrastructure

America’s number one lender of small businesses, according to the FDIC, has announced that it is introducing US$250bn in funding to be spread out over the course of 18 months in celebration of America’s 250th Anniversary.

The funding from Bank of America (BofA) is part of its new Critical Infrastructure Finance Initiative (CFIT) will be deployed through investment, advisory and financing solutions. 

“We are proud of our long history supporting the American economy. As America marks its 250th year, this initiative reflects our confidence in the country’s future and the investments that will shape it,” notes Jim DeMare, Co-President, Bank of America. 

“The infrastructure that powers our economy, strengthens our energy security and secures our technological leadership will drive growth, create jobs and define America’s next chapter.”

Its goal is to support US infrastructure development, boosting BofA’s mission of financing digital, energy and power.

The funding will support economic growth in the US, in addition to the country’s “innovation and competitiveness”.

The increased demand for energy comes from the boom in data centres that support AI demand.

BofA says that the increase in demand for transportation systems, diversified supply chains, manufacturing capacity, computing power and of course energy are “propelling a new wave of infrastructure investment across the US”.

Split down to three

The bank notes that the funding, which includes investing, capital markets, advisory solutions and primary market lending, will be dedicated to three broad categories.

The first infrastructure category will focus on digital; this incorporates data centres, telecommunications and semiconductors, in addition to computing infrastructure with hardware such as chips and equipment. 

“Meeting America's growing infrastructure needs requires mobilising capital at scale across increasingly interconnected sectors,” comments Karen Fang, Global Head of Infrastructure & Sustainable Finance and Co-Head of Global Capital Solutions at Bank of America. 

“Delivering these projects requires integrated financing solutions spanning corporate and project-level capital in both public and private markets. By bringing together capital providers, developers, corporations and investors, we are focused on helping accelerate investment in infrastructure that drives economic growth and creates lasting value for communities.”

The second categories include energy and power infrastructure and other energy distribution systems. Conventional and renewable power generation and energy storage fall under this category.

Finally, the bank defines its third category as “core infrastructure”. This category includes essential assets such as transportation, electric and energy transmission, grid optimisation and water systems. 

The financing is supported by all eight lines of BofA’s business, with its Global Capital Solutions and Infrastructure and Sustainable Finance leading the funding charge. 

As a final tribute to the anniversary, the funding will be rolled out from 1 January 2026 and end on 4 July, 2027.