S&P Global Ratings sees hyperscaler AI infrastructure capex topping $1.3 trillion by 2027
QQQ•S&P Global Ratings sees hyperscaler AI capex topping $1.3 trillion by 2027
- S&P Global Ratings projected combined hyperscaler capital expenditure to exceed $1.3 trillion by 2027, driven by AI infrastructure buildouts.
- Negative free operating cash flow is expected across Alphabet, Amazon, Microsoft, Meta, Oracle, and SpaceX in 2026-27; recovery is not projected until 2029.
- Funding mix is shifting toward debt, leases, equity issuance, guarantees, joint ventures, and SPVs, raising debt-like obligations and credit-analysis complexity.
- The base-case model assumes a 2028 inflection point as revenue accelerates and capex growth moderates, hinging on AI monetization and demand durability.
