June 29, 2026, (Inside AI) — Corporate borrowing tied to artificial intelligence is surging without signs of slowing, pushing hyperscalers like Amazon and Alphabet to issue record-breaking debt in currencies beyond the U.S. dollar. In the last 12 months, the two companies alone raised $60 billion through multi-currency bonds, tapping markets in Europe, Canada, and Asia to avoid saturating U.S. investors.
This debt spree reflects an unprecedented spending cycle on chips, cloud infrastructure, and data centers. Capital expenditures for hyperscalers are projected to hit $725 billion this year, nearly double mid-2025 levels, according to BNP Paribas. With spending outpacing operating cash flow, external funding has become critical.
Amazon’s €14.5 billion eight-part deal in March set a euro corporate bond record, per LSEG. Alphabet shattered records with yen, Canadian dollar, Swiss franc, and sterling deals, and issued the first 100-year tech bond since 1997. Morgan Stanley’s global co-head of investment-grade debt, Teddy Hodgson, noted the diversification:
“Alphabet and Amazon have diversified into other global markets in Europe, Canada, Asia.”
These moves have reshaped global bond markets. Yet the funding needs are so vast that bankers are innovating beyond traditional corporate debt. A new breed of data center lease-backed deals is gaining traction, offering investors clearer cash flow visibility by tying repayments to pre-arranged leases—sometimes signed before construction begins.
Earlier this month, Stingray Compute, owned by Cipher Digital, issued an $810 million note backed by a lease to Amazon. The offer was nine times oversubscribed, said Cody Gunsch, head of North America leveraged finance capital markets at Morgan Stanley. He added that about 15 such deals, inspired by construction loans, have been sold to high-yield investors since last year. Stingray Compute did not comment.
Amazon stated it regularly evaluates its operating plan and makes financing decisions accordingly. Alphabet pointed to CFO Anat Ashkenazi’s disclosure of $100 billion in outstanding debt across six currencies, and CEO Sundar Pichai’s comment on funding investments through cash flow, debt, and equity.
Investors are grappling with the sheer volume. Hodgson warned AI debt could push investment-grade issuance above $2 trillion for the first time in 2026. Hyperscaler deals have already exceeded their full-year 2025 total and are on pace to hit BNP Paribas’ $250 billion forecast.
Victoria Fernandez, chief market strategist at Crossmark Global Investments, said demand remains strong for these high-quality bonds, but cautioned:
“If we start to see companies coming to the bond market over and over again, then I think it starts to be a concern.”
Recent stock sales by some firms add another layer. Hodgson noted investors are questioning how much more debt will be needed alongside equity raises. Yet saturation hasn’t hit: AI-related debt in the U.S. nears 15% of total investment-grade issuance, per Barclays, but remains a small slice of broader credit indices.
Scott Schulte, global co-head of investment-grade debt syndicate at Barclays, said the percentage is still low relative to total investment-grade debt. Jeff Given, head of developed-market fixed income at Manulife Investment Management, expects the pipeline to stay open as long as hyperscalers keep spending on long-term AI projects.
For now, the market is absorbing the flood. But the scale of ambition—and debt—leaves little room for error if AI bets falter.
