Global AI Debt Soars 357%, Threatening Taiwan’s Server Supply Chain

Amazon, Alphabet, Meta, Microsoft and Oracle are investing heavily in data centers and servers as they compete for AI computing capacity. Morgan Stanley estimates that the five cloud giants’ capital expenditure will reach $1.126 trillion in 2027. Spending is growing faster than revenue and cash flow, passing the risks of upfront financing and delayed payments on to Taiwan’s AI server manufacturing supply chain.

A June Morgan Stanley report showed that global AI-related bond issuance reached $236 billion as of the end of May 2026, up 357% from the same period in 2025. It forecast issuance would exceed $570 billion for all of 2026, equivalent to about NT$18 trillion. The five companies also have about $110 billion in unrecorded accounts payable. Oracle’s payment period rose 370% year over year, while Meta’s increased 73% and Microsoft’s 69%.