NEW YORK: Global debt issuance linked to artificial intelligence is projected to more than double to nearly $570 billion in 2026, driven by surging capital spending needs from major technology firms, according to Morgan Stanley, as reported by Reuters.
The investment bank estimates that AI-related global debt issuance stood at about $236 billion as of May 31, 2026, marking a fourfold increase compared with the same period last year.
According to Reuters, hyperscalers including Alphabet, Amazon, Microsoft, and Meta are increasingly turning to debt markets to finance massive infrastructure expansion as AI-driven capital expenditure requirements accelerate. Combined spending by these firms is expected to reach around $700 billion this year.
Morgan Stanley said issuance is expected to accelerate further in the second half of 2026, with total hyperscaler capital spending projected to surpass $1 trillion by 2027.
The report noted that technology companies, traditionally reliant on strong cash flows, are increasingly diversifying funding sources, including non-US dollar bond issuance, to meet rising investment demands.
The brokerage added that while the overall economic backdrop remains strong, bond market activity is currently being shaped largely by expectations of increased supply.
Reuters also reported that financing activity in the semiconductor sector is rising across both public and private markets, with a growing shift toward shorter-term financing structures that are repaid over time.