AI Investments Expected to Fuel Debt Issuance Market Through 2026

Companies’ investments in projects related to artificial intelligence are reportedly expected to fuel the debt issuance market through next year.

U.S. investment-grade bond issuance could reach $1.7 trillion this year and $1.85 trillion in 2026, a Wells Fargo executive said Thursday (Nov. 6).

Speaking with Bloomberg TV, Maureen O’Connor, global head of high-grade debt syndicate at Wells Fargo, said blue-chip companies are likely to borrow more to fund their artificial intelligence investments and to take advantage of favorable financing conditions, Bloomberg reported Thursday.

Debt sales have benefited from investors seeking still-elevated yields and liability-driven investors like pension funds and insurance companies seeking long-maturity bonds, O’Connor said, according to the report.

“From an issuance window perspective, it feels like an advantageous time to get in front of some of your 2026 funding needs,” O’Connor said, per the report.

PYMNTS reported in January that companies like Amazon, Meta, Microsoft and Google Cloud are building data centers and other AI infrastructure because traditional data centers and power grids are struggling to accommodate the intense computational power, data storage and energy required by AI.

IDC said at the time that the overall server market is forecasted to reach $1.3 trillion by 2028.

OpenAI CEO Sam Altman said on Oct. 29 that OpenAI would like to build an AI factory to make 1 gigawatt of compute per week of new capacity. Currently, the company has committed to about 30 gigawatts of computewith a total cost of ownership of about $1.4 trillion.

“We are comfortable with this given what we see on the horizon for model capability growth and revenue growth,” Altman said.

Meta told investors on Oct. 29 that the company will step up its infrastructure spending next year as it invests in company-owned data centers, third-party cloud services and compensation for AI talent.

PYMNTS reported on Oct. 28 that Microsoft is no longer just a software company or even a cloud company, but an AI infrastructure provider.

“Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact,” Microsoft Chairman and CEO Satya Nadella said during the company’s quarterly earnings call. “It’s why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead.”

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