Goldman Sachs' Amanda Lynam on why the debt markets will play a larger role in the AI buildout

2024 Issuance & 2026 Outlook

• Hyperscalers have issued $194 billion in debt so far this year.
• $250 billion in direct supply from hyperscalers is projected for 2026.
• Debt financing is expected to constitute roughly 33% (one-third) of 2026 capital expenditures (CapEx).

2027 Projections & Drivers

• Supply is forecast to peak in 2027, with debt financing expected to rise to 35% of CapEx.
• This increase is driven by monetization delays ranging from three months to two years post-investment.
• Converging levels of CapEx and operating cash flows are limiting excess liquidity compared to previous years.
• Market participants anticipate debt markets will play a significantly larger role in financing future hyperscaler investments.