AI-driven demand for data centres means eurozone could be on brink of 'financing wave of unprecedented proportions'
US technology giants’ soaring bond sales could increase European government borrowing costs by reducing investor demand for public debt, European Central Bank (ECB) economists have warned.
In a blog post published on Monday, ECB analysts said the massive financing needs of AI data centres are increasingly leading major US tech firms to issue euro-denominated debt – a move that risks “crowding out” appetite for European government bonds at a time when sovereign yields are already at a 15-year high.
Alphabet, Amazon, Meta Platforms, Microsoft and Oracle’s share of euro-denominated ‘reverse Yankees’ – bonds issued by US firms in a foreign currency – nearly doubled between 2025 and 2026, with Amazon setting an all-time record for debt issuance, the analysts noted.
These five firms, often referred to as ‘hyperscalers’, now account for just under 10% of euro-denominated debt issued by non-financial firms, with roughly €40 billion worth of bonds currently outstanding.
