Morgan Stanley Sees AI Debt Issuance Surpassing $570B by 2026

Key Facts

As the global race for advanced technology leadership intensifies, securing massive liquidity has become a fundamental pillar for sustaining sector growth. According to reports, Morgan Stanley predicts that AI-related debt issuance will exceed $570 billion by the year 2026. This forecast reflects the massive scale of capital investment required to build out AI infrastructure and signals the sector's growing reliance on debt markets for long-term financing.

This expansion in borrowing coincides with record spending by Big Tech firms; per market data, Microsoft's capital expenditures alone are projected to exceed $50 billion annually to support data center expansion. Compared to 2023 levels, this forecast represents a significant shift in how tech balance sheets are structured, as experts suggest that moving toward long-term debt aims to offset the high operational costs of developing large language models.

Investors should monitor liquidity levels in credit markets, with Morgan Stanley (0QYU.L) shares trading at $214.66 (close June 12, 2026). Looking ahead at the economic calendar, upcoming speeches from Federal Reserve officials could influence borrowing costs, potentially impacting the pace of these massive debt issuances over the next two years.