Global AI Debt Issuance Set to Top 500 Billion Dollars
Morgan Stanley predicts AI-related global debt issuance will more than double to 570 billion dollars in 2026 as tech hyperscalers seek alternative funding for capital expenditures. Total spending from major tech firms is expected to surpass 1 trillion dollars by 2027.
Morgan Stanley forecasts global AI-related debt issuance will more than double to nearly $570B in 2026. This projection compares to nearly $236B in issuance recorded during the first five months of 2026, a fourfold increase over the same period last year. The shift occurs as tech hyperscalers turn to credit markets to meet massive capital expenditure requirements that exceed their internal cash flows.
### Hyperscalers Pivot to Debt Markets Tech companies that historically relied on internal cash flows are increasingly tapping credit markets to sustain investment. Alphabet, Amazon, Microsoft, and Meta Platforms are projected to reach $700B in total outlays this year. Morgan Stanley analysts expect this capex to surpass $1T in 2027.
