Hyperscalers line up $131 billion for AI data center buildout

Amazon, Google, Microsoft and Oracle disclosed plans in the past week to raise more than $131 billion in debt and equity for AI infrastructure, according to Data Center Dynamics.

Amazon's share is an $80 billion loan facility disclosed in an SEC filing, the largest of the three named amounts. It is part of its supplier financing arrangements for technology infrastructure purchases and can be tapped between Q1 2027 and Q3 2028. The filing describes the facility as subject to variability based on the extent and timing of purchase orders and pricing terms, up to about $80 billion, with variable rates and five-year maturities from each borrowing.

Microsoft's coupon range of 4.85% to 6.35% on $25 billion of bonds gives lenders a reference for hyperscaler unsecured debt, useful to anyone pricing infrastructure loans or leases against these tenants. The bonds are expected to close Nov. 4. Amazon's facility works differently: variable rates, a five-year tenor from each draw, and a size that depends on purchase orders, so $80 billion is the ceiling on what can be drawn.

Oracle's raise, disclosed Monday, Nov. 2, splits $20 billion between $10 billion of common stock and $10 billion of floating-rate senior notes. The company said net proceeds would go to general corporate purposes, which may include capital expenditures, repayment of debt, future investments or acquisitions, and dividends or buybacks.

Amazon put more than $77 billion into data centers, AI servers, warehouses and other capital projects in its most recent quarter, above expectations. It said it expects full-year capex to stay in the $220 billion range it first gave in July. Microsoft spent $45.2 billion on capex in the quarter and projects $170 billion for 2027, down from a previous $175 billion estimate. Oracle expects $90 billion to $95 billion for its full year.

Together, the Amazon, Microsoft and Oracle raises come to $125 billion. Amazon held its $220 billion range with trailing-12-month free cash flow at negative $42.4 billion, as Private Wealth Daily previously reported. Oracle's structure differs: half the $20 billion is stock, against a loan facility at Amazon and term bonds at Microsoft.