The AI Race Is Driving Tmt Debt Issuance

The competition to build AI platform infrastructure is driving a surge in TMT debt issuance, with an expected €55bn in Europe and US$50bn in the US for 2026. While cash flows are strong, companies are tapping credit markets to accelerate capacity expansion.

Key Takeaways

• 1.TMT issuers are expected to drive significant debt issuance in 2026, with an estimated €55bn in Europe and at least US$50bn in the US.
• 2.Investment in AI infrastructure is primarily funded by operating cash flow, but companies are issuing debt to capture market share and maintain financial flexibility.
• 3.Large technology firms maintain industry-leading ratings and significant headroom to issue debt within standard benchmark caps (up to 3%).

Table of Contents

• AI revolution translates into strong revenue growth
• Technology sector continues to show strong revenue growth (USD)
• Organic cash generation remains impressive and can cover investment requirements
• Capital expenditures are rising quickly (USD)
• Most technology platforms generate solid cash flow (OCF – Capex) (USD)
• TMT companies continue to raise cash in debt markets
• For TMT, total outstanding debt is largely denominated in US$ and euros (€bn)
• Individual issuers also have room to raise more debt
• 2026 monthly bond supply (incl. redemptions) in Europe and the US
• How does this impact overall credit supply figures?

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