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Alphabet plans $185 billion capex as hyperscaler borrowing is projected to hit $400 billion by 2026
Monday, January 26, 2026 at 08:23 PM
Alphabet is raising capital through massive bond offerings, including a 100-year bond, to fund a projected $185 billion in capital expenditures this year. Morgan Stanley forecasts that total borrowing by hyperscalers will surge to $400 billion by 2026 to support massive infrastructure investments.
Context
Alphabet is aggressively tapping global credit markets to fund its AI expansion, initiating a $20 billion US dollar bond sale that has already attracted over $100 billion in orders. The company is simultaneously launching its first-ever bond offerings in Switzerland and the UK, the latter featuring a rare 100-year bond. This century-bond represents the first such move by a major tech firm in nearly three decades, signaling long-term confidence in its infrastructure-heavy roadmap.
The capital raise directly supports Alphabet’s massive $185 billion capital expenditure plan for 2026. This spending reflects a broader industry shift as hyperscalers transition from cash-funded models to high-leverage debt to maintain their lead in the AI race. Morgan Stanley anticipates that total borrowing by these tech giants will reach $400 billion by 2026, a sharp increase from $165 billion in 2025, which may widen corporate spreads as markets absorb the record-breaking supply of new debt.
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