Big Tech Drives Record €50 Billion Offshore Bond Push to Fund AI Infrastructure

10 articles · Updated · WTVB · Jun 1

Amazon’s €14.5 billion March sale—the largest euro corporate bond deal on record—and Alphabet’s yen, sterling and Swiss-franc issues show Big Tech is now raising unprecedented sums outside the U.S.
Bankers say the offshore borrowing is meant to fund trillions of dollars in AI infrastructure, especially data centers, while diversifying funding, hedging currency exposure and tapping borrowing costs that can beat U.S. markets.
That wave has pushed non-financial U.S. corporate issuance in euros above €60 billion this year, and Morgan Stanley expects hyperscalers alone to sell about €50 billion of euro debt in 2026.
Hyperscalers’ non-dollar issuance has doubled to 30% of their total bond funding this year, lifting activity in markets such as the yen and Swiss franc and drawing other U.S. companies to consider foreign-currency debt.
Investors are buying the deals to gain AI exposure in markets with few tech names, but analysts warn that as tech borrowing grows, bond markets outside the U.S. will become more vulnerable to AI-driven volatility.

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