S&P forecasts major hyperscalers will face negative free cash flow in 2026-2027 as debt and leasing fuel AI expansion.
Global investment in AI infrastructure is projected to surpass $1.3 trillion by 2027, driven by rapid expansion in data centers and computing capacity.
The six largest hyperscalers are expected to report negative free operational cash flow in 2026 and 2027, as financing through debt, leases, and guarantees becomes critical to sustain growth. This trend reflects escalating capital demands for AI development.
Funding strategies are shifting toward alternative financial instruments to support infrastructure buildout amid rising costs and competitive pressures.