Global hyperscale cloud service providers spent approximately $260 billion on capital projects in 2024 and nearly $450 billion in 2025. One estimate suggests that the total investment required for the entire construction cycle could reach $6 trillion to $7 trillion by 2030. This figure is so large that most credit investors have never truly faced such investment opportunities in their past.
The key issue is not only the scale of the spending itself, but also that even companies with the strongest balance sheets cannot independently bear these investments. Morgan Stanley estimates that by 2028, the cumulative spending will be approximately $3 trillion. Even assuming that most of the companies' operating cash flow is used for these investments, this would only cover slightly less than half of the funding needs.
The other half must appear on the balance sheets of other companies in the form of debt or similar debt. The largest portion, external financing, is estimated at around $800 billion. This funding will not primarily come through the traditional corporate bond market, but rather through asset-backed finance (ABF).
