AI expansion to drive surge in corporate borrowing, reshaping global debt markets: Report

The rapid advancement of artificial intelligence (AI) is set to fundamentally alter the landscape of global corporate debt markets. As technology firms increasingly seek funding for substantial infrastructure projects, borrowing is expected to surge. The OECD Global Debt Report 2026 underscores this trend, indicating that the demand for AI-related infrastructure, including data centers, high-performance chips, and computing power, will catalyze a new wave of corporate debt issuance in the near future. AI development is emerging as one of the most capital-intensive technological transformations in recent memory. Leading companies in the AI sector are making significant investments in extensive computing infrastructure necessary for training and deploying AI models. This includes the construction of data centers, acquisition of advanced chips, and the expansion of global cloud networks. To fund these ambitious projects, many tech giants are increasingly tapping into debt markets. Traditionally, these companies leaned more on internal cash flows and equity financing compared to other sectors. However, the magnitude of investment required for AI initiatives is driving a shift towards raising capital through bonds and various debt instruments. The OECD report reveals that in 2025, nine key technology firms successfully raised approximately $122 billion from global bond markets, which constituted nearly half of all bond issuances within the tech sector. This marks a significant departure from conventional financing methods, as these firms adapt to the escalating investment demands of AI. Looking ahead, the same group of companies is projected to invest about $4.1 trillion in capital expenditures from 2026 to 2030, focusing on AI infrastructure and associated technologies. Such immense spending levels could lead to a considerable uptick in borrowing from corporate debt markets. If half of these investments are financed through bonds, it is anticipated that these tech companies could become major players in global corporate bond issuance, significantly influencing international debt markets. The implications of AI investments are expected to extend beyond the technology sector. Establishing and running data centers necessitates substantial investments in energy systems, semiconductor production, cooling technologies, and construction. Firms in these related fields may also turn to debt markets for financing their new projects, further reshaping the corporate credit landscape. As technology companies carve out a larger presence in bond markets, there is a risk of increased concentration of debt issuance among a limited number of large firms. This shift could lead corporate debt markets to mirror equity markets more closely, given that technology firms already represent a considerable portion of global stock market capitalization. Moreover, the report highlights potential risks associated with the rise of AI-related borrowing. Major investment commitments tied to rapidly evolving technologies may render debt markets more susceptible to fluctuations in interest rates, economic conditions, or investor sentiment. Nonetheless, debt markets are anticipated to play a pivotal role in financing the burgeoning global AI sector. As companies compete to establish the necessary infrastructure for the next generation of artificial intelligence, corporate borrowing is expected to be a crucial driver in shaping debt markets in the years to come.