Big Tech Moves $120 Billion in AI Data Center Debt Off Balance Sheets Through Creative Financing December 24, 2025 Major technology companies are increasingly turning to sophisticated financial structures to fund their massive artificial intelligence (AI) data center expansions, moving an estimated $120 billion in associated debt off their corporate balance sheets. This strategic shift is crucial as the race for AI supremacy demands unprecedented capital investment in computing infrastructure, while allowing firms to preserve their credit ratings and financial flexibility. The financing maneuver involves creating separate legal entities, often joint ventures or project finance vehicles, to own and operate the data center assets. These entities then raise debt directly from capital markets, primarily through institutional investors on Wall Street. This effectively isolates the substantial financial risk and leverage from the parent tech giants' core financial statements. This wave of financing is directly tied to the scale of the AI build-out. The $120 billion figure underscores the enormous capital required to construct and power the next generation of data centers, which are significantly larger and more energy-intensive than traditional facilities to support advanced AI workloads. By employing these off-balance-sheet methods, technology leaders can continue their aggressive infrastructure rollout without alarming shareholders or credit agencies with a sharp rise in reported debt. As one analyst noted, "Creative financing helps insulate Big Tech while binding Wall Street to a future boom or bust." The implications for the industry and financial markets are profound. For the tech sector, it enables continued breakneck expansion in AI capacity. For Wall Street investors, it represents a growing, asset-backed investment stream but also ties their fortunes directly to the long-term viability and profitability of the AI data center ecosystem. This deepens the interconnectedness of technology and finance, making the financial sector a key stakeholder in the success or failure of the AI infrastructure boom. Source: moneycontrol
Big Tech Moves $120 Billion in AI Data Center Debt Off Balance Sheets Through Creative Financing
