Hyperscaler AI capex tops $1.3T by 2027

S&P Global Ratings projects combined capital expenditure by six hyperscalers will exceed $1.3 trillion by 2027, while all six are expected to post negative free operating cash flow in 2026 and 2027, according to its new AI-infrastructure financing analysis. The report says debt, leases, guarantees, and special-purpose vehicles are increasingly funding the buildout, with cash-flow recovery not expected until 2029. For builders, the number to file is not just the spend: cloud capacity is being financed on a balance sheet that may stay cash-negative for three more years, so lock-ins deserve a credit-risk review alongside the Rubin order’s $40M/MW power math.