Big Tech's AI Debt Binge Tests High-Grade Market, Barclays Says
Big tech companies are borrowing more than expected to fund their artificial intelligence infrastructure, putting a strain on the investment-grade bond market. The debt issuance by these companies, including Meta, Alphabet Inc., and Amazon.com Inc., is likely to exceed $200 billion this year and potentially increase further in 2027. This surge in borrowing is driven by the need to fund data centers and other AI-related expenditures, which are expected to reach $1 trillion next year.
- ▪Debt issuance by big tech companies is expected to exceed $200 billion this year.
- ▪Capital expenditures by these companies could reach $1 trillion next year.
- ▪The investment-grade bond market may not be able to accommodate all of the financing needs of big tech companies.
Opening excerpt (first ~120 words) tap to expand
TechnologyBig Tech’s AI Debt Binge Tests High-Grade Market, Barclays SaysFacebookXLinkedInEmailLinkGiftExpandTransmission line towers next to an Amazon Web Services data center in Johnstown, Ohio. Photographer: Brian Kaiser/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Davide BarbusciaMay 21, 2026 at 4:02 PM UTCBookmarkSaveThe biggest tech companies are borrowing more than expected to fund their spending on data centers and other artificial intelligence infrastructure, and the investment-grade bond market won’t be able to accommodate all of their financing needs.Debt issuance by so-called hyperscalers, which…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Bloomberg.com.
Discussion
0 commentsMore from Bloomberg.com
