Tech Giants Tap Private Credit to Fund AI Infrastructure Buildout

Amazon, Alphabet, Microsoft, Meta and Oracle are increasingly turning from cash flow to corporate bonds and private credit to expand AI data centers. Companies use joint ventures or special-purpose entities to hold assets, then lease them back under long-term contracts, keeping most of the debt off their balance sheets. Banks still provide credit facilities, however, creating the potential for risks to spread through private funds, insurers and banks.

The Bank for International Settlements said in its quarterly review published on March 16, 2026, that the five hyperscalers issued more than $100 billion of debt in 2025, while their capital expenditure nearly doubled over the previous two years. UBS data showed that technology-sector private debt rose by $100 billion in one year to $450 billion as of August 2025, while lending by business development companies increased from $80 billion to $150 billion.