Moody’s Ratings revealed that the five leading hyperscalers, Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ: META), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft Corp. (NASDAQ:MSFT) and Oracle Corp. (NYSE:ORCL), have racked up $662 billion in future data center lease obligations that remain off their balance sheets.
The race to build AI infrastructure has led to a significant financial overhang. These tech giants have entered into long-term data center lease commitments that have yet to commence and, therefore, are not classified as current liabilities. As a result, the obligations do not appear on their balance sheets under generally accepted accounting principles (GAAP), Fortune reported, citing a Moody’s report released Monday.
By 2025 end, the companies had accumulated $969 billion in total undiscounted future lease commitments, highlighted Moody’s. In the coming years, as these leases take effect, more than half a trillion dollars in data center assets …Full story available on Benzinga.com
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