US Big Tech firms' off‑balance‑sheet debt tops $1.65 trillion

Alphabet, Microsoft, Amazon, Meta and Oracle have accumulated off‑balance‑sheet liabilities that have surged eightfold over four years to about $1.65 trillion, according to a Nikkei analysis. These obligations, which include long‑term leases, joint‑venture financing and other special‑purpose vehicles, are not recorded on the companies’ balance sheets but represent future cash commitments tied to AI‑related data‑center construction and other capital‑intensive projects.

The hidden debt now exceeds the $1.35 trillion each firm reports as on‑book debt. Analysts note parallels to the Enron era, though current regulations make the structures legal. The risk emerges if AI demand falls short, forcing lease obligations onto the balance sheets and potentially prompting write‑downs that could affect lenders, insurers and credit ratings; S&P has already cut Oracle’s rating amid concerns over stretched obligations.