Big Tech Raises Record International Debt

Big Tech companies, referred to as 'hyperscalers', including Alphabet Inc.>>> and Amazon (company)>>>, are raising record amounts of debt in international markets outside the United States>>>. This strategic move aims to diversify their funding sources, hedge currency risks from global assets, and take advantage of lower borrowing costs in regions like Europe>>>. Alphabet Inc.>>> has set borrowing records in sterling, Switzerland — Swiss franc, Japan — Japanese yen, and Canada — Canadian dollar markets, while Amazon (company)>>> completed the largest ever euro corporate bond deal, raising 14.5 billion euros. These debt sales are primarily driven by the need to finance trillions of dollars in Artificial intelligence infrastructure, particularly data centers. Financial institutions like BNP Paribas>>> and JPMorgan Chase>>> have facilitated these deals, noting the increased depth and opportunity in international markets. This shift is leading to a significant increase in non-dollar issuance by hyperscalers and is attracting investors like Candriam>>> who seek exposure to the tech sector in international bond markets. The growing tech issuance is expected to make corporate bond markets outside the United States>>> more susceptible to tech sector developments and potential volatility.