The enormous buildout of AI data centers, chips and power infrastructure is starting to change the corporate bond market as investors demand more compensation to finance the expansion.

Reuters reports that gross debt issuance from hyperscalers is projected to reach a record $420 billion in 2027, about 60% above estimated 2026 issuance, according to Goldman Sachs data. The issue is not primarily fear of default. Portfolio managers say the sheer volume of borrowing is forcing them to reconsider concentration limits and demand better pricing.

AI-linked corporate debt has recently traded at spreads around 115 basis points, compared with roughly 78 basis points for the broader investment-grade market. That gap illustrates how the physical cost of AI is moving beyond GPUs and electricity into financing itself.

A recent X post from The Kobeissi Letter highlighted SoftBank’s large debt financing as one example of how aggressively capital is being raised around AI:

BitcoinVersus.tech previously covered SoftBank’s $11.1 billion AI financing. The broader bond-market data suggest that deal is part of a much larger infrastructure funding cycle involving hyperscalers, data-center operators and chip-related borrowers.

Reuters reported that investors remain willing to finance highly rated AI companies, but some buyers are increasingly seeking opportunities outside hyperscaler debt after repeated large offerings. If that trend persists, the cost of capital could become another important constraint on the pace of AI infrastructure construction.

Source: Reuters.

BitcoinVersus.Tech Editor’s Note:

We volunteer daily to ensure the credibility of the information on this platform is Verifiably True. If you would like to support to help further secure the integrity of our research initiatives, please donate here: 3C9o19EH5HSiwEPyCTmEKzxhNCbo2X6TTb

BitcoinVersus.tech is not a financial advisor. This media platform reports on financial subjects purely for informational purposes.