Big Tech Raises Foreign Bonds to Finance AI Buildout

Alphabet, Amazon and other U.S. technology companies have issued large foreign-currency bonds across Europe, Japan, Switzerland, Canada and the U.K. this year to fund AI-related data centers, chips, power and cloud infrastructure.

Companies have tapped non-dollar markets to diversify funding sources, match regional liabilities and access overseas investor demand for high-grade technology credit.

Amazon led a large transaction in March, raising €14.5 billion in an eight-part euro deal that market data show was the largest corporate bond sale in the euro market. Alphabet has set borrowing records in Japanese yen, Canadian dollars, Swiss francs and sterling, and is now a major issuer in sterling and Swiss franc corporate bond indexes.

U.S. nonfinancial companies have issued more than €60 billion of euro-denominated debt this year. Morgan Stanley projects euro borrowing by hyperscalers could reach about €50 billion in 2026. Bank of America estimates hyperscalers have doubled the share of non-dollar bond funding to roughly 30% this year.

Issuers often keep proceeds in the currency of the bond rather than converting them back to dollars. That approach helps match funding to regional needs, reduces currency-management costs and gives local investors direct exposure to technology credit tied to AI.

John Servidea, JPMorgan’s global co-head of investment grade finance, noted: “Markets such as the euro have developed enough depth to support much larger capital raises than in the past.”

Bankers say issuing abroad can allow companies to space out U.S. dollar deals, which can ease pressure on their dollar bond programs. Banks report ample capacity in several foreign markets to absorb large transactions from mega-cap issuers.

Analysts warn that as Big Tech becomes a larger borrower in Europe, Japan, Switzerland and Canada, local corporate bond markets may become more sensitive to changes in investor sentiment about the timing, scale or profitability of AI investment, which could affect volatility and credit quality.

For now, demand from investors remains strong and firms continue to use global bond markets to secure the scale, currency mix and timing they need for planned AI investment.