Big Tech Borrows Nearly $100 Billion to Fuel AI and Cloud
Major technology firms are tapping bond markets to raise close to $100 billion for sprawling investments in AI and cloud infrastructure, a move that shifts financing from cash hoards to debt. This surge matters because it changes corporate risk profiles, could reshape credit markets, and raises questions about returns if AI capacity outpaces demand.
A Reuters Factbox published November 24, 2025 details a wave of bond issuance by major technology companies that together are seeking nearly $100 billion to finance massive expansions in data centers and artificial intelligence capabilities. Amazon, Microsoft, Alphabet, Oracle and Meta have been among the issuers, deploying multi tranche debt offerings that include large baseline deals and filings for additional capacity.
Amazon launched a $15 billion deal this month, while Oracle filed for $18 billion in new debt capacity. Meta filed paperwork for an offering of up to $30 billion, and Alphabet sold notes across multiple markets as it added to its borrowing plans. Microsoft and other large cloud providers also participated in recent bond activity, underscoring how pervasive the strategy has become across the sector.
The rush to the credit markets marks a strategic pivot. For years of rapid growth many of these companies relied principally on internal cash flow and large cash balances to underwrite capital spending. Increasingly, they are choosing to borrow from long term investors to finance capital intensive projects, reasoning that debt markets can offer attractive cost structures and preserve liquidity for other uses.
The financings are intended to accelerate construction of hyperscale data centers, deploy specialized AI chips and build the networking and power infrastructure required to operate growing fleets of AI models. Executives at the companies have framed the spending as necessary to compete as cloud and AI demand intensifies around the world. The calculations behind the move reflect a balance between near term borrowing costs and expectations of future revenue tied to AI as a service, cloud hosting, and integrated consumer features.
Analysts caution there is a downside to the strategy. Rising debt levels paired with outsized capital expenditure plans could unsettle investors if capacity grows faster than demand or if monetization of new AI capabilities proves slower than anticipated. An oversupply of compute could drive pricing pressure in cloud markets, compressing returns and making it harder for issuers to service higher levels of leverage.
The bond offerings also highlight broader effects on financial markets and policy. Heavy issuance from a handful of large companies could influence benchmark yields and the appetite of institutional investors for corporate credit. Credit rating agencies will be watching how new borrowings change leverage metrics and free cash flow dynamics, and any downgrades could raise borrowing costs for the sector.
Beyond finance, the expansion has societal implications. The environmental footprint of large data center projects, the concentration of AI compute among a small group of firms, and the speed at which advanced AI capabilities are deployed all carry policy and ethical questions. Localities where major centers are built will face infrastructure and labor demands, while national policymakers will weigh competition and security concerns tied to concentrated AI capacity.
For now the market is answering the companies. Investors purchased portions of the offerings, and underwriters priced several tranches to clear. The next test will be whether the additional capacity these funds unlock produce the revenue growth and strategic advantage companies expect, or whether it contributes to a more difficult market for returns across the cloud and AI industries.
