JPMorgan Raises 2026 Tech Debt Forecast to $540 Billion

JPMorgan Chase & Co. raised its 2026 debt issuance forecast for the technology, media, and telecommunications sector to $540 billion, up from a previous estimate of $450 billion. The bank attributes this growth to the massive capital deployment by megatech hyperscalers building artificial intelligence infrastructure.

Hyperscaler debt is projected to account for $317 billion of the total, while data center project financing is expected to contribute another $85 billion. JPMorgan strategists identified chip-backed financing as a future frontier that could potentially reach trillions of dollars by 2030.

The bank expects Meta Platforms Inc. to return to the market and views Microsoft Corp. as a potential first-time bond issuer since 2017. Other investment-grade data center funding opportunities are expected to come from Oracle and OpenAI. Recent activity, including a $25 billion June bond sale by Nvidia, has already contributed to the increased forecast for non-hyperscaler tech debt.

Despite the growth, the bank noted that record issuance has led to investor fatigue and secondary market volatility for issuers such as Amazon.com Inc. and SpaceX.