AI hyperscalers are expected to boost the issuance of US corporate bonds in 2026, according to analysts

AI Expansion Drives Surge in U.S. Corporate Bond Issuance

By Matt Tracy

Analysts are predicting a notable rise in U.S. corporate bond issuance in 2026, fueled in large part by the aggressive infrastructure investments of leading AI hyperscaler companies.

According to a recent Barclays report, while increased mergers and acquisitions and the need for companies to refinance existing obligations will contribute to higher bond issuance this year, the most significant driver is expected to be the capital demands of AI firms.

Barclays projects that total U.S. corporate bond issuance will climb to $2.46 trillion in 2026, representing an 11.8% increase from the $2.2 trillion forecast for 2025. Net issuance is anticipated to reach $945 billion this year, a jump of 30.2% compared to $726 billion in the previous year.

Barclays analysts noted, "The uptick in net supply is primarily coming from non-financial sectors, with AI hyperscaler capital expenditures posing the greatest potential for outsized public bond offerings."

AI giants have been ramping up both their investments and borrowing as they expand their data center networks and processing capabilities at a rapid pace.

According to a January 9 report from BofA Securities, the five dominant AI hyperscalers—Amazon, Google (owned by Alphabet), Meta, Microsoft, and Oracle—issued a combined $121 billion in U.S. corporate bonds last year. This figure far surpasses their annual average of $28 billion between 2020 and 2024.

BofA analysts also expect borrowing by these tech leaders to accelerate, projecting that the group could raise around $140 billion each year over the next three years, with the possibility of annual totals exceeding $300 billion.

If these trends continue, the Big Five hyperscalers could match the average yearly issuance of the nation’s six largest banks, which BofA estimates at $157 billion.

BofA analysts commented, "A surge in bond supply to finance AI initiatives could position these five tech firms among the largest issuers in the investment-grade index."

MUFG analysts reported that in 2025, hyperscalers accounted for four of the five largest U.S. high-grade bond transactions, most of which occurred in the latter half of the year.

Notable deals included Oracle’s $18 billion bond sale in September, followed by Meta’s record-setting $30 billion offering in October—the largest non-M&A high-grade bond sale to date—and substantial November issuances from Alphabet ($17.5 billion) and Amazon ($15 billion).

This borrowing spree has led to wider credit spreads, prompting investors to increasingly use credit default swaps (CDS) as protection against potential AI-related risks.

Since June 2025, the cost of insuring hyperscaler debt via CDS has risen, with Oracle’s five-year CDS more than tripling after its September bond sale, according to MUFG.

Legal Action Against Oracle

On Wednesday, Oracle faced a lawsuit from bondholders who allege they incurred losses because the company, chaired by Larry Ellison, did not disclose its need to issue significant additional debt to support its AI infrastructure expansion.

Reporting by Matt Tracy in Washington; Edited by Lisa Shumaker