JPMorgan Sees $1.5T Hyperscaler Debt Capacity for AI Buildout
Stephanie Aliaga states the bond market can absorb another $1.5 trillion in hyperscaler debt while leverage stays below average.
JPMorgan Asset Management global market strategist Stephanie Aliaga stated that the bond market can absorb additional debt from the six largest hyperscalers as they expand AI infrastructure.
The six companies now make up roughly 5 percent of the US investment-grade bond index, double their share from two years ago.
Debt capacity and spending outlook
Aliaga noted that the group’s leverage ratios remain significantly below the broader market average and estimated the companies could add another $1.5 trillion in debt while keeping overall leverage sustainable.
JPMorgan projects total AI infrastructure spending will reach $5.5 trillion by 2030, with cash flows covering only a fraction of the outlay.
Remaining unknowns
Exact timing and final debt issuance amounts remain projections. No individual hyperscaler names or leverage ratios were disclosed.