UK's Rishi Sunak Foresees Tech Giants Overtaking US Government in 2027 Debt Issuance

The Prediction

Rishi Sunak, the former UK Prime Minister, has made a bold prediction about the future of debt issuance in the tech industry. According to Sunak, technology companies will issue more long-term debt than the US government in 2027, and he attributes this shift to the growing investment in AI.

The Numbers Behind the Borrowing Binge

By early September 2026, global AI-related debt issuance had reached approximately $450 billion, about double the 2025 total. Hyperscalers accounted for 47% of sterling corporate bond sales in the UK so far in 2026, according to the Bank of England.

Looking Ahead

Projections for hyperscaler bond issuance in 2027 sit in a range of $250-$400 billion. JPMorgan predicts a total of $4.1 trillion in debt-fueled spending on AI between 2026 and 2030. The Bank of England is watching closely, flagging financial stability concerns tied to the AI borrowing wave, including opaque financing structures and potential corporate debt pressures.

What This Means for Investors and Borrowers

For bond investors, a flood of high-grade corporate supply could be a welcome development, offering more options for long-dated yield outside of government paper. The 47% figure from the UK is worth watching as an early indicator of how hyperscalers are taking a share of the market. If they continue to dominate, Sunak's forecast starts to look less like a bold call and more like a description of what is already underway.

The Implications

The approximately $450 billion already raised this year and JPMorgan's $4.1 trillion projection both assume that AI infrastructure will generate returns large enough to service the debt. This raises questions about the long-term sustainability of this borrowing binge and the potential risks to financial stability.