Hyperscalers including Meta and Microsoft will rely on debt for over a third of $1.2 trillion in AI infrastructure spending by 2027.
Big Tech firms are projected to fund more than a third of their AI infrastructure investments with debt by 2027, as capital expenditures surge. Leading hyperscalers—Meta, Microsoft, Alphabet, Amazon, and Oracle—are expected to spend $1.2 trillion on AI-related capex by 2027, up from $405 billion in 2025 and $750 billion in 2026.
Cash flows alone are insufficient to cover the rapid expansion, prompting a shift toward debt financing. Analysts noted growing management commentary supporting increased debt issuance to sustain the AI buildout, though exact figures remain uncertain.
The trend reflects an intensifying arms race in AI infrastructure, with companies racing to scale data centers and computing power. Debt markets may see heightened activity as these firms seek external funding to meet ambitious spending targets.