Alphabet and Other Big Tech Could Borrow Hundreds of Billions Each

Amazon, Alphabet and Meta Platforms in recent months have each turned to the bond markets to raise tens of billions of dollars for their massive investments in AI data centers. And all three are likely to borrow much more in the next couple of years, with their projected capital expenditures now likely to come close to or surpass the cash they generate.

How much more can they borrow, without suffering a credit ratings downgrade and seeing their financing costs rise, is now a big question. Right now, credit agency S&P estimates all three will end up with a little more debt than cash by the end of this year, the reverse of the current situation. Longer term, however, the companies could each borrow close to $200 billion and still retain their credit rating, judging by S&P’s methodology.