The e-commerce giant issues $25 billion in debt to fund AI-driven data center growth amid rising capital expenditures.
Amazon has issued $25 billion in debt to finance its data center expansion, a move aimed at strengthening its position in the cloud infrastructure market. The company’s long-term debt has surged in recent years, reflecting heavy investments in AI and cloud computing capabilities.
Capital expenditures for 2024 are projected to reach $200 billion, while cash from operations over the past 12 months totaled nearly $150 billion. The debt issuance bridges the gap between spending and revenue, aligning with Amazon’s strategy to dominate early-stage AI infrastructure.
The company expects the investment to secure market share before competitors solidify their client bases, though the move adds to its already elevated debt levels.