US technology giants are reshaping global corporate bond markets as they borrow beyond the dollar to fund a costly race to build artificial intelligence infrastructure.
Alphabet and Amazon have led a surge in multi-currency issuance across Europe, Japan, Switzerland, Canada and the UK, as the companies seek funding for data centres, cloud capacity and AI-related investment.
The borrowing spree shows how the financial demands of AI are pushing even cash-rich technology groups to look far beyond their home market.
The move reflects a mix of funding diversification, deeper overseas bond markets and the potential to match global assets with local liabilities.
Bankers say non-dollar markets now offer enough capacity for mega-cap issuers to raise large amounts without relying solely on US investors.
AI spending drives borrowing shift
The scale of planned AI investment is changing how Big Tech funds itself.
Data centres, chips, power supply and cloud infrastructure require heavy upfront capital, forcing technology companies to supplement operating cash flow with bond issuance.
Alphabet and Amazon are among the most active US borrowers outside the dollar market.
Their overseas sales are part of a broader move by hyperscalers to secure funding early, while demand remains strong and borrowing conditions in some currencies are still attractive.
John Servidea, global co-head of investment grade finance at JPMorgan, said markets such as the euro have developed enough depth to support much larger capital raises than in the past.
That has encouraged US companies beyond the biggest technology names to consider foreign-currency debt more seriously.
Records fall across currencies
Amazon raised €14.5 billion in March through an eight-part euro transaction, the largest corporate deal on record in the euro market, according to LSEG data.
The deal underlined investor appetite for high-grade technology credit at a time when AI spending is becoming one of the dominant themes in global markets.
Alphabet has also become a major issuer across foreign-currency bond markets.
The Google parent set borrowing records in yen, Canadian dollars, Swiss francs and sterling, while becoming one of the largest borrowers in sterling and Swiss franc corporate bond indexes.
US non-financial companies have already issued more than €60 billion of euro-denominated debt this year, a record.
Morgan Stanley estimates that euro borrowing by hyperscalers could reach €50 billion in 2026, potentially making US companies the largest source of corporate debt issuance in the euro zone.
Investors seek AI exposure
The overseas borrowing wave is being supported by investors who want exposure to US technology credit in markets where such names have historically been scarce.
The analysts said issuers are often keeping proceeds in the same currency as the bond sale rather than swapping everything back into dollars.
That helps match funding with regional needs and gives European and other global investors access to AI-linked credit in their own markets.
Bank of America estimates hyperscalers have doubled the non-dollar share of their bond funding to 30% this year.
JPMorgan says issuing abroad can also help companies leave longer gaps between US dollar deals, potentially easing pressure on their dollar bonds.
AI risk spreads into credit markets
The shift carries broader implications for bond investors.
As technology companies become larger borrowers in Europe, Japan, Switzerland and Canada, local corporate bond markets may become more exposed to swings in sentiment around AI spending.
That could be positive if AI investment delivers strong returns and reinforces Big Tech’s credit quality.
But it could also increase volatility if investors start questioning the scale, timing or profitability of the buildout.
For now, demand remains strong. Big Tech is using global bond markets to secure the scale, flexibility and currency mix it needs for the AI race.
In doing so, it is turning overseas credit markets into a bigger part of the technology funding story.
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