Investment-grade corporates are preparing for a sharp rise in financing needs next year as AI infrastructure spending accelerates and M&A pipelines expand, according to bank executives at Reuters NEXT.
📌 Top five U.S. tech giants may require nearly $100B in funding by 2026, said Meghan Graper, Global Head of DCM at Barclays.
Big Tech is increasingly tapping the debt markets to build AI-ready data centers — a major shift for firms that historically relied on cash reserves.
📌 Since September, the “hyperscalers” have already issued ~$90B in public bonds to fund cloud and AI expansion.
M&A Backlog Expected to Boost Issuance
- Investment-grade companies currently have $175B in announced M&A deals, up from $75B a year ago.
- Morgan Stanley expects more sponsor-driven deals as IPO markets reopen and dual-track exits regain credibility.
- Sponsor IPO backlog is now at a post-COVID high.
Are Investors Worried About AI-Driven Circular Financing?
Not at all, according to JPMorgan and Morgan Stanley:
- Debt is backed by tangible assets, such as large-scale data centers.
- Cash flows of issuing companies are highly diversified, reducing systemic risk concerns.
“Their investments represent only small components of their broader businesses,” said Anish Shah of Morgan Stanley.
As AI spending and M&A volumes scale, 2026 is shaping up to be one of the strongest years for corporate financing in the past decade.