AI Hyperscalers Raise $27B via Off-Balance-Sheet Bonds with 90% Leverage, July 13 Report Warns

According to Columbia Business School Professor Steen van Nieuwerburgh's report on July 13, AI hyperscalers are financing massive datacenter infrastructure through off-balance-sheet special purpose vehicles (SPVs), masking actual leverage ratios that can reach 70-80% or even 90% on individual projects. Meta's Hyperion datacenter project exemplifies this trend: the company raised $27 billion in structured bonds in October 2025 after selling an 80% stake to private equity firm Blue Owl for $2.5 billion. The resulting joint venture achieved a 90% debt-to-asset ratio despite Meta not reflecting this leverage on its consolidated balance sheet under GAAP accounting.

Morgan Stanley estimates AI hyperscalers need $2.9 trillion total capex through 2028, with over 50% funded via bonds (direct and off-balance-sheet). Moody's data reveals hyperscalers hold $970 billion in lease commitments, yet $660 billion remains unreported in financial statements. Professor van Nieuwerburgh warns that these structures increase asset-level leverage and disperse risk across investors, raising systemic financial stability concerns.