Hyperscalers ramp AI capex and borrow heavily, testing mega cap balance sheets
Feb 23rd 2026
Amazon, Meta and Alphabet raised full year capex plans and UBS now sees aggregated hyperscaler capex potentially topping $770 billion in 2026. Credit strategists estimate a $40 billion to $50 billion rise in borrowing that could push public debt issuance to $230 to $240 billion this year, prompting investor scrutiny.
- Hyperscalers have materially increased AI capital spending plans, with UBS forecasting aggregated capex could reach about $770 billion in 2026.
- UBS credit strategists say the higher capex implies $40 billion to $50 billion more borrowing and public market bond issuance of $230 billion to $240 billion this year.
- Major tech firms including Oracle and Alphabet have made large bond sales, with Alphabet issuing about $20 billion and Oracle tapping roughly $18 billion.
- Investors say using debt to fund speculative AI capex challenges the sector's prior reputation for fortress balance sheets and shifts credit risk to bondholders.
- Market participants warn of hidden risks such as data center obsolescence from rapid chip improvements and increased off balance sheet activity.
- Asset managers including BlackRock and Vanguard say the shift creates a market focus on which AI investments will convert into revenue and calls for more active credit and bond selection.