S&P Global Forecasts AI Infrastructure Spending to Top $1.3 Trillion by 2027

S&P Global Ratings forecasts the six largest hyperscalers will collectively spend over $1.3 trillion on AI infrastructure by 2027. The analysis covers capital expenditures by Alphabet, Amazon, Microsoft, Meta, Oracle, and SpaceX to expand AI capabilities.

S&P Global expects all six companies to generate negative free operating cash flow in 2026 and 2027. S&P Global does not anticipate recovery until 2029. To fund this expansion, these firms increasingly use debt, leases, and other complex financing arrangements.